Dear Interactive Brokers Customer:

Interactive Brokers ("IB") is required by its regulators to periodically provide you with certain disclosures and other information. Accordingly, we are delivering the following documents to you.

** Financial Advisors: you should ensure that your clients review these documents. **


2109 | 7/12/2022

IBKR can maintain its low commission structure because we have built automated trade processes to minimize human intervention and discretion. In this respect, we have established some simple terms which govern trading in all IBKR accounts. These rules recognize that from time to time, due to their nature, electronic systems, which often rely on third party connectivity, may fail or be delayed and exchanges and data providers may make errors.

  • Clients are obligated to accept all executions that are consistent with the instructions specified in clients' orders.
  • Although we believe our failure rate is among the lowest in the industry, any system may fail at one time or another, often by reason of forces beyond human control. IBKR is not liable for system or network failures, and clients who require the highest level of reliability agree to maintain secondary trading facilities.
  • Clients are responsible for protecting the confidentiality of their usernames, passwords and security devices, and they will be responsible for trades entered by third parties using their credentials.
  • In the event trades are confirmed by IBKR as executed, and they are later cancelled by an exchange, trading network or regulatory authority, the IBKR confirmed trade will also be deemed cancelled.
  • IBKR generally processes orders in the order in which it receives them, including all orders submitted by IBKR or its affiliates.
  • IBKR is not responsible for ensuring the execution of orders at limit prices if the order's transmission is delayed or is otherwise affected by data communication failure.
  • IBKR may terminate a client's use of IBKR's services at any time in IBKR's sole discretion without prior notice to the client. IBKR may also decline to accept, to execute or to cancel any client order, or may otherwise restrict, in whole or in part, a client's use of IBKR's services at any time, for any length of time, in IBKR's sole discretion, without prior notice to the client.
  • IBKR does not provide trading, investment or tax advice, and clients shall not rely on statements by IBKR employees or statements on the IBKR website which could be construed as providing such advice.
  • IBKR generally does not make margin calls, and IBKR maintains the right to close out positions at any time (including immediately), in any manner, and through any market or dealer, without notice or liability, in any account that does not have sufficient funds to meet the account requirements imposed by IBKR or by regulatory authorities (whether these are margin requirements for margin-enabled accounts or the requirement to maintain a positive account balance for cash accounts), or else to satisfy any applicable fees that you owe to IBKR.
  • Although IBKR maintains the right to liquidate positions in under­margined accounts, it owes no duty to clients to conduct such liquidations. Clients will not rely on IBKR's liquidation rights and auto-liquidation systems to function as a stop-loss order.
  • Notwithstanding the above, if for any reason you fail to meet the account requirements and IBKR does not liquidate your positions but instead issues you with a margin call, you must satisfy such margin call immediately in the manner specified by IBKR. IBKR, in its sole discretion, will determine if it issues you with a margin call or if it liquidates your positions to address the margin violation.
  • You are responsible to IBKR for the continued accuracy and updating of all information provided to IBKR.
  • IBKR clients agree to keep IBKR informed of their current email address, so they will be in a position to read and receive emails addressed to them by IBKR.

This disclosure, discusses the risks inherent in trading in a margin account, including the fact that IB may liquidate positions in an under-margined account without notice to the customer.

1005 | 06/01/2022

DISCLOSURE OF RISKS OF MARGIN TRADING

Interactive Brokers (“IB”) is furnishing this document to you to provide some basic facts about purchasing securities and futures contracts on margin, and to alert you to the risks involved with trading in a margin account. “Margin trading” can mean engaging in a transaction in which securities are purchased partially through a margin loan extended to you by IB, for which the securities act as collateral. Margin trading can also mean trading investment products such as futures or options in which an initial “margin” deposit is made to secure your obligations and further margin may be required to secure your obligations as the value of your positions changes.

This document also describes special risks associated with trading on margin in an IRA account, as described below.

Before trading stocks, futures or other investment products in a margin account, you should carefully review the margin agreement provided by IB and you should consult IB regarding any questions or concerns you may have with your margin accounts.

When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from IB. If you choose to borrow funds from IB, you will open a margin account with the firm. The securities purchased are IB’s collateral for the loan to you. If the securities or futures contracts in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, IB can take action, such as sell securities or other assets in any of your accounts held with IB or issue a margin call, in order to maintain the required equity in the account.

You should understand that pursuant to the IB Margin Agreement, IB generally will not issue margin calls, that IB will not credit your account to meet intraday margin deficiencies, and that IB generally will liquidate positions in your account in order to satisfy margin requirements without prior notice to you and without an opportunity for you to choose the positions to be liquidated or the timing or order of liquidation.

In addition, it is important that you fully understand the risks involved in trading securities or futures contracts on margin. These risks include the following:

  • You can lose more funds than you deposit in the margin account. A decline in the value of securities or futures contracts that are purchased on margin may require you to provide additional funds to IB or you must put up margin to avoid the forced sale of those securities or futures contracts or other assets in your account(s).

  • IB can force the sale of securities or other assets in your account(s). If the equity in your account falls below the maintenance margin requirements, or if IB has higher “house” requirements, IB can sell the securities or futures contracts or other assets in any of your accounts held at the firm to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale.

  • IB can sell your securities or other assets without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities or other assets in their accounts to meet the call unless the firm has contacted them first. This is not the case. As noted above, IB generally will not issue margin calls and can immediately sell your securities or futures contracts without notice to you in the event that your account has insufficient margin.

  • You are not entitled to choose which securities or futures contracts or other assets in your account(s) are liquidated or sold to meet a margin call. IB has the right to decide which positions to sell in order to protect its interests.

  • IB can increase its “house” maintenance margin requirements at any time and is not required to provide you with advance written notice. These changes in firm policy often take effect immediately. Your failure to maintain adequate margin in the event of an increased margin rate generally will cause IB to liquidate or sell securities or futures contracts in your account(s).

  • If IB chooses to issue a margin call rather than immediately liquidating undermargined positions, you are not entitled to an extension of time on the margin call.

  • You will pay interest on your margin loan at the rates disclosed on the IB website, which can increase or decrease over time. These margin interest costs reduce your return on investment. For details on IB's margin rates, please visit ibkr.com/margin.

  • Special Risks of Trading on Margin in an IRA Account:

    • Margin Trading in an IRA Account May Not Be Suitable Depending on Your Financial Circumstances. Trading requiring margin (including futures trading and short option trading) involves a high degree of risk and may result in a loss of funds greater than the amount you have deposited in your IRA account. You must determine whether trading on margin in an IRA account is advisable based on your financial circumstances, your tolerance for risk, the number of years until your retirement, and other factors. You should consult a professional financial advisor to determine if margin trading in your IRA account is consistent with your financial goals.

    • You Must Closely Monitor Your Account and Your Trading to Avoid Adverse Tax Consequences: Trading requiring margin (including futures trading and short option trading) may require the deposit of additional funds to your account to maintain sufficient margin. At the same time, provisions of the Internal Revenue Code place limits on the amount of funds that can be deposited to an IRA account. Deposits to the account in excess of such limits may cause adverse tax consequences, including but not limited to, forfeiture of the tax-advantaged status of the IRA account and/or penalties. As described above, IB will liquidate positions in your account in the event that you cannot or do not deposit sufficient funds to satisfy margin requirements.

  • Special Risks of Short Selling:

    There are additional risks associated with short selling stocks that may expose you to significant losses. This strategy is not suitable for all customers. Fees associated with short selling are available on the IB website.

    Please read the following carefully. For details regarding short-selling at IB, please review the information available on the IB website at https://ibkr.info/article/2880.

    • Short sales must be done in a margin account and are subject to IB's margin requirements. IB may close out your short position by buying the stock if you do not maintain adequate margin in your account. This may expose you to substantial losses if the price of the stock is above the price at which you sold it short. Short selling carries unlimited market risk and could lead to extraordinary losses because you may have to purchase a stock at a higher price than you sold it for in order to cover a short position, and there is no limit to how high the price of a stock can go.

    • When you sell a stock short IB must lend you the shares either from its own inventory or from shares it sources from various stock-loan counterparties. You are charged interest in connection with borrowing securities in order to maintain a short position. Interest rates paid to, or rates and fees collected from, clients in connection with borrowing or lending securities are subject to frequent change without notice and will vary based on the nature of the security being sold short (i.e., the interest charge to finance a short position in a hard-to-borrow stock may be more costly than a stock that is not hard-to-borrow). Please refer to the IB website for details on short sale costs.

    • Before selling short, IB must confirm that it can locate shares of the stock to borrow for delivery to the buyer. Borrowed stock is subject to recall without notice. Stock lenders retain the right to recall their stock at any time. IB may buy-in stock on your behalf, without notice to you, to cover short positions in the event that IB cannot borrow stock or re-borrow stock after a recall notice. You are liable for any losses or costs incurred in the event of a buy-in, including any associated trade commissions or fees. Please refer to the IB website for additional details on short selling, recalls and buy-ins.

    • You may be liable for dividend payments and certain other corporate actions. If you are maintaining a short settled position as of the close of business two business days prior to the Record Date (or one business day prior to the Ex-Dividend date) you will be liable to the lender for the dividend.

This disclosure describes the basic characteristics of a portfolio margin account as well as the risks of trading in a portfolio margin account.

4015 | 10/27/2021

Portfolio Margin Risk Disclosure Statement

    OVERVIEW OF PORTFOLIO MARGINING

  1. Portfolio margining is a margin methodology that sets margin requirements for an account using a "risk-based" pricing model that calculates the largest potential loss of all positions in a product class or group across a range of underlying prices and volatilities. This model, known as the Theoretical Intermarket Margining System ("TIMS"), is applied each night to U.S. stocks, OCC stock and index options, and U.S. single stock futures positions by the federally-chartered Options Clearing Corporation ("OCC") and is disseminated by the OCC to participating brokerage firms each night. Interactive Brokers evaluates margin compliance throughout the trading day based on the current positions in the account and current market prices, but the margin calculations are based on TIMS parameters received the prior evening.
  2. The goal of portfolio margining is to set levels of margin that more precisely reflect actual net risk. The customer may benefit from portfolio margining in that margin requirements that are calculated based on net risk are generally lower than alternative “position” or “strategy” based methodologies for determining margin requirements. Lower margin requirements allow the customer more leverage in an account.
  3. CUSTOMERS ELIGIBLE FOR PORTFOLIO MARGINING

  4. To be eligible for portfolio margining, customers (other than broker-dealers or members of a national futures exchange) must be approved for writing uncovered options. If a customer (other than a broker-dealer or member of a national futures exchange) wishes to trade in unlisted derivatives, the customer must have and maintain at all times account equity of not less than five million dollars, aggregated across all accounts under identical ownership at the carrying broker-dealer and/or its US-regulated affiliated broker-dealers or Futures Commission Merchants. This identical ownership requirement excludes accounts held by the same customer in different capacities (e.g., as a trustee and as an individual) and accounts where ownership is overlapping but not identical (e.g., individual accounts and joint accounts). In addition to the requirements of the self-regulatory organization rule, carrying broker-dealers may have their own minimum equity requirement and possibly other eligibility requirements.
  5. POSITIONS ELIGIBLE FOR A PORTFOLIO MARGIN ACCOUNT

  6. All margin equity securities (as defined in Section 220.2 of Regulation T of the Board of Governors of the Federal Reserve System), warrants on margin equity securities or on eligible indices of equity securities, equity-based or equity-index based listed options, and security futures products (as defined in Section 3(a)(56) of the Securities Exchange Act of 1934) are eligible to be margined in a portfolio margin account. In addition, a customer that has an account with equity of at least five million dollars may establish and maintain positions in unlisted derivatives (e.g., OTC swaps, options) on a margin equity security or an eligible index of equity securities that can be priced by a theoretical pricing model approved by the Securities and Exchange Commission ("SEC").
  7. SPECIAL RULES FOR PORTFOLIO MARGIN ACCOUNTS

  8. A portfolio margin account may be either a separate account or a sub-account of a customer’s standard margin account. In the case of a sub-account, equity in the standard account may be available to satisfy any margin requirement in the portfolio margin sub-account without transfer to the sub-account.
  9. A portfolio margin account or sub-account will be subject to a minimum margin requirement of $.375 for each listed option, unlisted derivative and security futures product, multiplied by the contract’s or instrument’s multiplier, carried long or short in the account. Other eligible products are not subject to a minimum margin requirement.
  10. A margin deficiency in the portfolio margin account or sub-account, regardless of whether due to new commitments or the effect of adverse market movements on existing positions, must be met within three business days. Failure to meet a portfolio margin deficiency by the end of the third business day will result in a prohibition on entering any new orders, with the exception of new orders that reduce the margin requirement. Failure to meet a portfolio margin deficiency by the end of the third business day will result in the prompt liquidation of positions on the fourth business day, to the extent necessary to eliminate the margin deficiency.
  11. Any shortfall in aggregate equity across accounts, when required, must be met within three business days. Failure to meet a minimum equity deficiency by the end of the third business day will result in a prohibition on entering any new orders, with the exception of new orders that reduce the margin requirement, beginning on the fourth business day and continuing until such time as the minimum equity requirement is satisfied, or if applicable, all unlisted derivatives are liquidated or transferred out of the portfolio margin account.

    **Please note that pursuant to the IB Customer Agreement, IB reserves the right to liquidate positions prior to the fourth business day. **
  12. SPECIAL RISKS OF PORTFOLIO MARGIN ACCOUNTS

  13. Portfolio margining generally permits greater leverage in an account, and greater leverage creates greater losses in the event of adverse market movements.
  14. Because the maximum time limit for meeting a margin deficiency is shorter than in a standard margin account, there is increased risk that a customer’s portfolio margin account will be liquidated involuntarily, possibly causing losses to the customer.
  15. Because portfolio margin requirements are determined using sophisticated mathematical calculations and theoretical values that must be calculated from market data, it may be more difficult for customers to predict the size of future margin deficiencies in a portfolio margin account. This is particularly true in the case of customers who do not have access to specialized software necessary to make such calculations or who do not receive theoretical values calculated and distributed periodically by an approved vendor of theoretical values.
  16. Trading of margin equity securities, warrants on margin equity securities or on eligible indices of equity securities, listed options, unlisted derivatives on margin equity securities or an eligible index of equity securities, and security futures products in a portfolio margin account is generally subject to all the risks of trading those same products in a standard securities margin account. Customers should be thoroughly familiar with the risk disclosure materials applicable to those products, including the booklets entitled “Characteristics and Risks of Standardized Options” and “Security Futures Risk Disclosure Statement”. Because this disclosure statement does not disclose the risks and other significant aspects of trading in security futures and options, customers should review those materials carefully before trading these products in a portfolio margin account.
  17. Customers should consult with their tax advisers to be certain that they are familiar with the tax treatment of transactions in margin equity securities, warrants on margin equity securities or on eligible indices of equity securities, listed options, unlisted derivatives on margin equity securities or an eligible index of equity securities, and security futures products, including tax consequences of trading strategies involving both security futures and option contracts.
  18. The descriptions in this disclosure statement relating to eligibility requirements for portfolio margin accounts, and minimum equity and margin requirements for those accounts, are minimums imposed under the self-regulatory organization rules. Time frames within which margin and equity deficiencies must be met are maximums imposed under the self-regulatory organization rules. Broker-dealers may impose their own more stringent requirements.
  19. Customers should bear in mind that the discrepancies in the cash flow characteristics of security futures and certain options are still present even when those products are carried together in a portfolio margin account. In addition, discrepancies in the cash flow characteristics of certain unlisted derivatives may also be present when those products are carried in a portfolio margin account. Both security futures and options contracts are generally marked to the market at least once each business day. Similarly, certain unlisted derivatives may also be marked to the market on a daily basis. However, there may be incongruity between the marking to the market of each eligible product in that marks may take place with different frequency and at different times within the day. For example, when a security futures contract is marked to the market, the gain or loss is immediately credited to or debited from, respectively, the customer’s account in cash. While a change in the value of a long option contract may increase or decrease the equity in the account, the gain or loss is not realized until the option is liquidated, exercised or assigned. Accordingly, a customer may be required to deposit cash in the account in order to meet a variation payment on a security futures contract even though the customer is in a hedged position and has experienced a corresponding (but yet unrealized) gain on an option. Alternatively, a customer who is in a hedged position and would otherwise be entitled to receive a variation payment on a security futures contract may find that the cash is required to be held in the account as margin collateral on an offsetting option position.
  20. The general provisions governing portfolio margining (including definitions used in this document) are set forth in NYSE Rule 431(g) and FINRA Rule 4210(g), which can be found at https://www.nyse.com/regulation/rules and www.finra.org .


    ACKNOWLEDGEMENT FOR CUSTOMERS UTILIZING A PORTFOLIO MARGIN ACCOUNT



    BY SIGNING BELOW, I/WE AFFIRM THAT I/WE HAVE READ AND UNDERSTOOD THE PORTFOLIO MARGINING RISK DISCLOSURE STATEMENT.


The below agreement provides for the arbitration of futures trading disputes between Interactive Brokers and its clients. Please read the agreement and click "Accept" or "Decline". Then type your name exactly as shown.

3003 | 11/28/2012

Interactive Brokers Futures Arbitration Agreement

Any controversy or claim between Interactive Brokers LLC ("IB") and the undersigned ("Customer") arising out of or relating to Customer's Account with IB, to transactions between IB and Customer, to the Customer Agreement with IB or any other agreement between IB and Customer, or to the breach of any such transaction or agreement shall, except as provided below, be resolved by arbitration before a forum chosen in accordance with the procedure set out below. If, by reason of any applicable statute, regulation, exchange rule or otherwise, Customer's advance agreement to submit a controversy to arbitration would not be enforceable by IB, this provision shall not permit Customer to enforce IB's advance agreement to submit to arbitration. Any award rendered in any arbitration conducted pursuant to this agreement shall be final, binding and enforceable in accordance with the laws of the State of Connecticut and judgment may be entered on any such award by any court having jurisdiction thereof.

At such time as Customer notifies IB that Customer intends to submit a controversy to arbitration, or at such time as IB notifies Customer that IB intends to submit a controversy to arbitration, Customer will have the opportunity to choose a forum from a list of qualified forums provided by IB. A "qualified forum" is an organization whose procedures for conducting arbitrations meet Acceptable Practices established by the Commodity Futures Trading Commission ("CFTC").

As required by CFTC Rule 166.5, IB will pay any incremental fees which may be assessed by a qualified forum for provision of a mixed arbitration panel, unless the arbitrators hearing the controversy determine that Customer has acted in bad faith in initiating or conducting the arbitration. A "mixed arbitration panel" is an arbitration panel composed of one or more persons, a majority of whom are not members or associated with a member, or an employee of the designated contract market (upon which the transaction giving rise to the dispute was executed or could have been executed) and who are not otherwise associated with the designated contract market.

In connection with this Arbitration Agreement, IB is required to furnish to Customer the following statement, pursuant to Rule 166.5 of the CFTC (for the purposes of the following, "you" or "your" means IB's Customer):

THREE FORUMS EXIST FOR THE RESOLUTION OF COMMODITY DISPUTES: CIVIL COURT LITIGATION, REPARATIONS AT THE COMMODITY FUTURES TRADING COMMISSION ("CFTC"), AND ARBITRATION CONDUCTED BY A SELF-REGULATORY OR OTHER PRIVATE ORGANIZATION.

THE CFTC RECOGNIZES THAT THE OPPORTUNITY TO SETTLE DISPUTES BY ARBITRATION MAY IN SOME CASES PROVIDE MANY BENEFITS TO CUSTOMERS, INCLUDING THE ABILITY TO OBTAIN AN EXPEDITIOUS AND FINAL RESOLUTION OF DISPUTES WITHOUT INCURRING SUBSTANTIAL COSTS. THE CFTC REQUIRES, HOWEVER, THAT EACH CUSTOMER INDIVIDUALLY EXAMINE THE RELATIVE MERITS OF ARBITRATION AND THAT YOUR CONSENT TO THIS ARBITRATION AGREEMENT BE VOLUNTARY.

BY SIGNING THIS AGREEMENT, YOU: (1) MAY BE WAIVING YOUR RIGHT TO SUE IN A COURT OF LAW; AND (2) ARE AGREEING TO BE BOUND BY ARBITRATION OF ANY CLAIMS OR COUNTERCLAIMS WHICH YOU OR IB MAY SUBMIT TO ARBITRATION UNDER THIS AGREEMENT. YOU ARE NOT, HOWEVER, WAIVING YOUR RIGHT TO ELECT INSTEAD TO PETITION THE CFTC TO INSTITUTE REPARATIONS PROCEEDINGS UNDER SECTION 14 OF THE COMMODITY EXCHANGE ACT WITH RESPECT TO ANY DISPUTE WHICH MAY BE ARBITRATED PURSUANT TO THIS AGREEMENT. IN THE EVENT A DISPUTE ARISES, YOU WILL BE NOTIFIED IF IB INTENDS TO SUBMIT THE DISPUTE TO ARBITRATION. IF YOU BELIEVE A VIOLATION OF THE COMMODITY EXCHANGE ACT IS INVOLVED AND IF YOU PREFER TO REQUEST A SECTION 14 "REPARATIONS" PROCEEDING BEFORE THE CFTC, YOU WILL HAVE 45 DAYS FROM THE DATE OF SUCH NOTICE IN WHICH TO MAKE THAT ELECTION.

You need not sign this agreement to open or maintain an account with IB. See 17 CFR 166.5.

BY SIGNING THIS FORM YOU ARE AGREEING TO THE TERMS AND CONDITIONS LAID OUT IN THIS DOCUMENT.

ELECTRONIC TRADING AND ORDER ROUTING SYSTEMS RISK DISCLOSURE STATEMENT

ELECTRONIC TRADING AND ORDER ROUTING SYSTEMS RISK DISCLOSURE STATEMENT


Electronic trading and order routing systems differ from traditional open outcry pit trading and manual order routing methods. Transactions using an electronic system are subject to the rules and regulations of the exchanges offering the system and/or listing the contract. You are responsible for directing your trading in accordance with the relevant policies, procedures and trading rules of the exchanges or systems to which your orders are routed. Before you engage in transactions using an electronic system, you should carefully review the rules and regulations of the exchanges offering the system and/or listing the instruments you intend to trade.

DIFFERENCES AMONG ELECTRONIC TRADING SYSTEMS: Trading or routing orders through electronic systems varies widely among the different electronic systems. You should consult the rules and regulations of the exchange offering the electronic system and/or listing the contract traded or order routed to understand, among other things, in the case of trading systems, the system's order matching procedure, opening and closing procedures and prices, error trade policies, and trading limitations or requirements, and, in the case of all systems, qualifications for access and grounds for termination and limitations on the types of orders that may be entered into the system. Each of these matters may present different risk factors with respect to trading on or using a particular system. Each system may also present risks related to system access, varying response times, and security. In the case of Internet-based systems, there may be additional types of risks related to system access, varying response times and security, as well as risks related to service providers and the receipt and monitoring of electronic mail.

RISKS ASSOCIATED WITH SYSTEM FAILURE: Trading through an electronic trading or order routing system exposes you to risks associated with system or component failure. In the event of system or component failure, it is possible that, for a certain time period, you may not be able to enter new orders, execute existing orders, or modify or cancel orders that were previously entered. System or component failure may also result in loss of orders or order priority. In this regard, Customer must maintain alternative trading arrangements in addition to Customer's IB account in the event that the IB system is unavailable for any reason.

SIMULTANEOUS OPEN OUTCRY PIT AND ELECTRONIC TRADING: Some contracts offered on an electronic trading system may be traded electronically and through open outcry during the same trading hours. You should review the rules and regulations of the exchange offering the system and/or listing the contract to determine how orders that do not designate a particular process will be executed.

LIMITATION OF LIABILITY: Exchanges offering an electronic trading or order routing system and/or listing the contract may have adopted rules to limit their liability, the liability of FCMs and software and communication system vendors, and the amount of damages you may collect for system failure and delays. These limitations of liability provisions vary among the exchanges. You should consult the rules and regulations of the relevant exchanges in order to understand these liability limitations.

INTERNET SERVICES: To the extent that Customer or IB use Internet services to transport data or communications, IB disclaims any liability for interception of any such data or communications. IB is not responsible, and makes no warranties regarding, the access, speed, availability or security of Internet or network services.


This document discusses some of the risks inherent in trading outside regular trading hours.

4016 | 10/11/2022

Risks of After-Hours Trading

There are special characteristics and unique risks associated with trading in securities at times that are outside the ordinary trading hours for the exchange(s) upon which such securities are traded, including trading on overnight trading venues such as the IBKR Eos ATS (in general, "After-Hours Trading" or “Extended Hours Trading”). Customers must familiarize themselves with these risks and determine whether After-Hours Trading is appropriate for them in light of their objectives and experience. Customers are responsible for familiarizing themselves with the hours of the relevant markets upon which they trade and for determining when to place orders for particular securities, how they wish to direct those orders, and what types of orders to use. Interactive Brokers' offer of After-Hours Trading does not constitute a recommendation or conclusion that After-Hours Trading will be successful or appropriate for all customers or trades.

Some risks associated with After-Hours Trading are as follows:

  1. Risk of Lower Liquidity. Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to regular market hours. As a result, your order may only be partially executed, or not at all.

  2. Risk of Higher Volatility. Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended hours trading than in regular market hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price in extended hours trading than you would during regular markets hours.

  3. Risk of Changing Prices. The prices of securities traded in extended hours trading may not reflect the prices either at the end of regular market hours, or upon the opening of the next morning. As a result, you may receive an inferior price in extended hours trading than you would during regular market hours.

  4. Risk of Unlinked Markets. Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hours system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive an inferior price in one extended hours trading system than you would in another extended hours trading system.

  5. Risk of News Announcements. Normally, issuers make news announcements that may affect the price of their securities after regular market hours. Similarly, important financial information is frequently announced outside of regular market hours. In extended hours trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.

  6. Risk of Wider Bid-Ask Spreads. The bid-ask spread refers to the difference in price between what you can buy a security for (the "offer" or "ask") and what you can sell it for (the "bid"). Lower liquidity and higher volatility in extended hours trading may result in wider than normal bid-ask spreads for a particular security.

  7. Risk of Lack of Calculation or Dissemination of Underlying Index Value or Intraday Indicative Value ("IIV"). For certain Derivative Securities Products, an updated underlying index value or IIV may not be calculated or publicly disseminated in extended trading hours. Since the underlying index value and IIV are not calculated or widely disseminated during the pre-market and post-market sessions, an investor who is unable to calculate implied values for certain Derivative Securities Products in those sessions may be at a disadvantage to market professionals. Additionally, securities underlying the indexes or portfolios will not be regularly trading as they are during Regular Trading Hours, or may not be trading at all. This may cause prices during Extended Trading Hours to not reflect the prices of those securities when they open for trading.

  8. Index Values.The Exchange will not report a value of an index underlying an index option trading during After-Hours Trading Hours, because the value of the underlying index will not be recalculated during or at the close of After-Hours Trading Hours.

  9. Trade Date / Corporate Actions. The trade date for trades in US stocks executed during regular trading hours (i.e., 9:30 a.m. to 4:00 p.m. New York time) or during the extended trading hours session (i.e., 4:00 p.m. to 8:00 p.m. New York time) is the date on which the order was executed. However, the trade date for trades executed during the overnight trading session (i.e., 8:00 p.m. to 4:00 a.m. the following morning) is the date of the morning when the overnight session ends (even if the trade is executed before midnight). Thus, for example, if an account holder purchases a US stock on the day prior to the ex-dividend date during the regular or extended hours sessions they will be entitled to receive the dividend, but if the purchase is made during the overnight session they will not be entitled to the dividend because the trade date for the overnight trade would be on the ex-dividend date.

During After-Hours Trading, Interactive Brokers ("IB") may provide quotations from and execute Customer trades through various Electronic Communications Networks ("ECNs"), exchanges or other trading systems including the IBKR Eos ATS (collectively "After-Hours Trading Facilities"). Quotations provided during After-Hours Trading may be different than quotations provided during exchange trading hours. Likewise, it is possible that the quotations displayed by IB from After-Hours Trading Facilities on which IB can execute Customer trades may be less favorable than those on other After-Hours Trading Facilities to which IB does not have access. Last sale information provided by IB may not reflect the prices of the most recent trades on all of the various After-Hours Trading Facilities.

For a list of trading hours for exchanges and ECNs, click here

For more information about the IBKR Eos ATS ("IBEOS"), please see the FAQ:
https://www.interactivebrokers.com/lib/cstools/faq/#/articles/377199603

This document provides information and risks pursuant to NFA and CFTC rules concerning entering into off-exchange foreign currency transactions.

4098 | 4/4/2022

Disclosure of Risks of Trading Cryptocurrency Futures And Options

TRADING IN CRYPTOCURRENCY FUTURES OR OPTIONS ("CRYPTO PRODUCTS") IS ESPECIALLY RISKY AND IS ONLY FOR CLIENTS WITH A HIGH RISK TOLERANCE AND THE FINANCIAL ABILITY TO SUSTAIN LOSSES IF CRYPTO-RELATED POSITIONS BECOME UNPROFITABLE. YOU MAY LOSE MORE THAN YOU INVEST.

By applying to trade Crypto Future or Options Products through Interactive Brokers, Client acknowledges and agrees to the following:

  1. Client has reviewed the Risk Disclosure for Futures and Options provided on the IB website and understands that the risks described in that Risk Disclosure apply equally or to a greater degree with respect to trading in Crypto Products. Below is a list of some of the possible risks of trading Crypto Products, but there may be other risks that are not specifically mentioned. Client should consult Client's financial advisor before trading Crypto Products.
  2. Crypto futures and options are margin products. Therefore losses (or gains) are magnified. Client acknowledges that Client could lose Client's entire investment and that possible losses are not limited to the funds and equity deposited in the account. Client may be required to pay additional funds to Interactive Brokers to cover losses in Crypto Products.
  3. Cryptocurrencies are a "virtual" currencies that is not controlled by any sovereign country and the value of which may not be based on any tangible commodity, security, economic measure or legal obligation of a company or government. Apart from the law of supply and demand, there may be no fundamental or economic basis for valuation of cryptocurrencies and their prices may move randomly.
  4. The underlying "cash" markets for cryptocurrencies (the product from which Crypto Futures and Options are derived) are largely unregulated and many are offshore. Underlying cryptocurrency markets may not be subject to registration, licensing or fitness requirements, audit trail or trade reporting rules, market integrity rules, wash sale, spoofing or other anti-fraud rules, disaster recovery or cybersecurity requirements, surveillance requirements, or anti-money laundering rules. Because of these factors, Cryptocurrency markets may be unusually susceptible to fraud and manipulation, which could adversely affect the price of Crypto Products.
  5. Cryptocurrency prices, including for Bitcoin and Ether, have been highly volatile historically, with sudden and unexpected upward and downward price swings. This increases the risk of trading Crypto Products.
  6. If you have a "short" position in a Crypto Product and market price for that Crypto Product rises, your potential loss is not limited. Depending on how quickly the underlying cryptocurreny prices rise, you may be unable to close your short position and therefore you may be unable to stop or limit the losses you are incurring. This is especially true if the exchanges for Crypto Products halt trading because of a sudden price move. You can suffer similar losses if you have a "long" position in Crypto Products and prices fall.

This disclosure, provided under Commodity Futures Trading Commission ("CFTC") rules, discusses certain risks and characteristics of trading futures and options on futures.

4019 | 6/5/2019

CFTC RISK DISCLOSURE STATEMENT - Rule 1.55(b)

The risk of loss in trading commodity futures contracts can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should be aware of the following points:


  1. You may sustain a total loss of the funds that you deposit with your broker to establish or maintain a position in the commodity futures market, and you may incur losses beyond these amounts. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the required funds within the time required by your broker, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account.

  2. The funds you deposit with a futures commission merchant for trading futures positions are not protected by insurance in the event of the bankruptcy or insolvency of the futures commission merchant, or in the event your funds are misappropriated.

  3. The funds you deposit with a futures commission merchant for trading futures positions are not protected by the Securities Investor Protection Corporation even if the futures commission merchant is registered with the Securities and Exchange Commission as a broker or dealer.

  4. The funds you deposit with a futures commission merchant are generally not guaranteed or insured by a derivatives clearing organization in the event of the bankruptcy or insolvency of the futures commission merchant, or if the futures commission merchant is otherwise unable to refund your funds. Certain derivatives clearing organizations, however, may have programs that provide limited insurance to customers. You should inquire of your futures commission merchant whether your funds will be insured by a derivatives clearing organization and you should understand the benefits and limitations of such insurance programs.

  5. The funds you deposit with a futures commission merchant are not held by the futures commission merchant in a separate account for your individual benefit. Futures commission merchants commingle the funds received from customers in one or more accounts and you may be exposed to losses incurred by other customers if the futures commission merchant does not have sufficient capital to cover such other customers' trading losses.

  6. The funds you deposit with a futures commission merchant may be invested by the futures commission merchant in certain types of financial instruments that have been approved by the Commission for the purpose of such investments. Permitted investments are listed in Commission Regulation 1.25 and include: U.S. government securities; municipal securities; money market mutual funds; and certain corporate notes and bonds. The futures commission merchant may retain the interest and other earnings realized from its investment of customer funds. You should be familiar with the types of financial instruments that a futures commission merchant may invest customer funds in.

  7. Futures commission merchants are permitted to deposit customer funds with affiliated entities, such as affiliated banks, securities brokers or dealers, or foreign brokers. You should inquire as to whether your futures commission merchant deposits funds with affiliates and assess whether such deposits by the futures commission merchant with its affiliates increases the risks to your funds.

  8. You should consult your futures commission merchant concerning the nature of the protections available to safeguard funds or property deposited for your account.

  9. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market reaches a daily price fluctuation limit ("limit move").

  10. All futures positions involve risk, and a "spread" position may not be less risky than an outright "long" or "short" position.

  11. The high degree of leverage (gearing) that is often obtainable in futures trading because of the small margin requirements can work against you as well as for you. Leverage (gearing) can lead to large losses as well as gains.

  12. In addition to the risks noted in the paragraphs enumerated above, you should be familiar with the futures commission merchant you select to entrust your funds for trading futures positions. The Commodity Futures Trading Commission requires each futures commission merchant to make publicly available on its Web site firm specific disclosures and financial information to assist you with your assessment and selection of a futures commission merchant. Information regarding this futures commission merchant may be obtained by visiting our Web site, www.interactivebrokers.com.

    ALL OF THE POINTS NOTED ABOVE APPLY TO ALL FUTURES TRADING WHETHER FOREIGN OR DOMESTIC. IN ADDITION, IF YOU ARE CONTEMPLATING TRADING FOREIGN FUTURES OR OPTIONS CONTRACTS, YOU SHOULD BE AWARE OF THE FOLLOWING ADDITIONAL RISKS:

  13. Foreign futures transactions involve executing and clearing trades on a foreign exchange. This is the case even if the foreign exchange is formally "linked" to a domestic exchange, whereby a trade executed on one exchange liquidates or establishes a position on the other exchange. No domestic organization regulates the activities of a foreign exchange, including the execution, delivery, and clearing of transactions on such an exchange, and no domestic regulator has the power to compel enforcement of the rules of the foreign exchange or the laws of the foreign country. Moreover, such laws or regulations will vary depending on the foreign country in which the transaction occurs. For these reasons, customers who trade on foreign exchanges may not be afforded certain of the protections which apply to domestic transactions, including the right to use domestic alternative dispute resolution procedures. In particular, funds received from customers to margin foreign futures transactions may not be provided the same protections as funds received to margin futures transactions on domestic exchanges. Before you trade, you should familiarize yourself with the foreign rules which will apply to your particular transaction.

  14. Finally, you should be aware that the price of any foreign futures or option contract and, therefore, the potential profit and loss resulting therefrom, may be affected by any fluctuation in the foreign exchange rate between the time the order is placed and the foreign futures contract is liquidated or the foreign option contract is liquidated or exercised.

THIS BRIEF STATEMENT CANNOT, OF COURSE, DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF THE COMMODITY MARKETS.


I hereby acknowledge that I have received and understood this risk disclosure statement.

3088 | 01/23/2013

CFTC RULE 15.05 NOTICE TO NON-U.S. TRADERS

In accordance with Rules 15.05 and 21.03 of the Commodity Futures Trading Commission ("CFTC"), 17 C.F.R. §§15.05 and 21.03, Interactive Brokers is required to notify you that we are considered to be your agent for purposes of accepting delivery and service of communications from or on behalf of the CFTC regarding any commodity futures contracts or commodity option contracts which are or have been maintained in your account(s) with us.

In the event that you are acting as agent or broker for any other person(s), we are also considered to be their agent, and the agent of any person(s) for whom they may be acting as agent or broker, for purposes of accepting delivery and service of such communications. Service or delivery to us of any communication issued by or on behalf of the CFTC (including any summons, complaint, order, subpoena, special call, request for information, notice, correspondence or other written document) will be considered valid and effective service or delivery upon you or any person for whom you may be acting, directly or indirectly, as agent or broker.

You should be aware that Rule 15.05 also provides that you may designate an agent other than Interactive Brokers. Any such alternative designation of agency must be evidenced by a written agency agreement which you must furnish to us and which we, in turn, must forward to the CFTC. If you wish to designate an agent other than us, please contact us in writing. You should consult 17 C.FR. § 15.05 for a more complete explanation of the foregoing.

Upon a determination by the CFTC that information concerning your account(s) with us may be relevant in enabling the CFTC to determine whether the threat of a market manipulation, corner, squeeze, or other market disorder exists, the CFTC may issue a call for specific information from us or from you. In the event that the CFTC directs a call for information to us, we must provide the information requested within the time specified by the CFTC. If the CFTC directs a call for information to you through us as your agent, we must promptly transmit the call to you, and you must provide the information requested within the time specified by the CFTC. If any call by the CFTC for information regarding your account(s) with us is not met, the CFTC has authority to restrict such account(s) to trading for liquidation only. You have the right to a hearing before the CFTC to contest any call for information concerning your account(s) with us, but your request for a hearing will not suspend the CFTC's call for information unless the CFTC modifies or withdraws the call. Please consult 17 C.F.R. §21.03 for a more complete description of the foregoing (including the type of information you may be required to provide).

Certain additional regulations may affect you. Part 17 of the CFTC Regulations, 17 C.F.R. Part 17, requires each futures commission merchant and foreign broker to submit a report to the CFTC with respect to each account carried by such futures commission merchant or foreign broker which contains a reportable futures position. (Specific reportable position levels for all futures contracts traded on U.S. exchanges are established in Rule 15.03.) In addition, Part 18 of the CFTC Regulations, 17 C.F.R. Part 18, requires all traders (including foreign traders) who own or control a reportable futures or options position and who have received a special call from the CFTC to file certain reports with the CFTC, including, but not limited to, a Statement of Reporting Trader (Form 40). Please consult 17 C.F.R. Parts 17 and 18 for more complete information with respect to the foregoing.

This document discusses risks inherent in day trading.

Day Trading Risk Disclosure Statement

This document discusses the order routing technology used for IB Customer orders as well as instances where IB may accept payment for order flow for certain executions.

This document is an acknowledgement that you have read and agreed to various Options Clearing Corporation disclosures. In addition, this document describes special treatment for uncovered option writers and the risks of trading equity options.

4402 | 04/01/2021

IMPORTANT INFORMATION ABOUT EQUITY, OPTIONS AND FUTURES EXCHANGE RULES

  1. Manipulative Trading: It is a violation of exchange rules for a customer, acting alone or in concert with others, to engage in manipulative trading, including trading designed to unlawfully influence the price or volume of an instrument, and trading without a bona fide investment or hedging or speculative purpose. Manipulative trading includes, but is not limited to: "wash sales", "matched orders", "painting the tape", "spoofing/small-lot baiting" (sending an order to an exchange in order unlawfully to manipulate the execution price of a separate order on that exchange or on another exchange), "marking the close" (sending an order to influence the price of an instrument near the close of trading) and sending orders whose primary purpose is the collection of rebates or payment for order flow rather than investment or trading of the relevant instrument.
  2. Pre-Arranged Trading, Block Trading, Crossing and Facilitation: Exchange rules govern the circumstances and procedures under which customers can seek to trade against each other, including pre-arranged trading, block trading, crossing trades, facilitation trades and solicitation trades. Customer must review relevant exchange rules before seeking intentionally to trade against another person or entity. See e.g., CFE Rule 614 (Pre-Arranged Trades); CME Rule 539 (Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited); CBOT Rule 539 (Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited); ICE Futures U.S. Rules 4.06 (Exchange for Related Positions) and 4.07 (Block Trading); Nasdaq ISE Options 3, Section 11 (Auction Mechanisms), Section 13 (Price Improvement Mechanism for Crossing Transactions) and Section 22 (Limitations on Order Entry); Small Exchange, Inc. Rule 608 (Abusive Trading Practices Prohibited).
  3. Improper Market Making: It is a violation of U.S. option exchange rules and American Stock Exchange ETF rules for a customer effectively to act as a market maker by holding itself out as willing to buy and sell securities on a regular or continuous basis. In determining whether a customer effectively is operating as a market maker, the exchanges will consider, among other things, the simultaneous or near-simultaneous entry of limit orders to buy and sell the same security; the multiple acquisition and liquidation of positions in the security during the same day; and the entry of multiple limit orders at different prices in the same security.
  4. Order Designation: It is a violation of exchange rules to transmit an order for a broker-dealer account or an account in which a broker-dealer has a beneficial ownership interest unless such order is properly marked as a brokerdealer order. Users of the IB system cannot transmit broker-dealer orders with a "customer" designation.

BY OPENING AN IB ACCOUNT AND USING THE IB SYSTEM, CUSTOMERS REPRESENT THAT THEY WILL CONDUCT THEIR TRADING IN ACCORDANCE WITH EXCHANGE RULES.

This document describes how stop and stop-limit orders submitted by customers are managed by IB.

4403 | 04/1/2021

Disclosure Concerning Auto Trading Service Providers

The U.S. Securities & Exchange Commission (the "SEC") has provided investors with the following information concerning Auto-Trading on the SEC's website at http://www.sec.gov/investor/pubs/autotrading.htm:

All About Auto-Trading

If you subscribe, or are thinking about subscribing to, an investment newsletter service that offers "auto-trading," please read this investor alert. Investment newsletters market "auto-trading" programs as a way to receive quick execution of trades recommended by the investment newsletter. In an "auto-trading" program, you establish an account at a brokerage firm that has agreed to accept trading instructions from the investment newsletter. In order to allow "auto-trading" in your account, you must sign an agreement with the broker authorizing it to accept trading instructions directly from the investment newsletter and to execute trades in your account without first getting your permission. The broker will make trades in your account without consulting you about the price, the type of security, the amount and when to buy or sell.

"Auto-trading," like any other arrangement that allows someone else to trade in your account without first asking your permission, can be highly risky. Here are some steps you'll want to take to check out an auto-trading program, before you hand over any money:

Check Out the Newsletter ? Find out whether the firm that's selling the investment newsletter is registered to do business as an investment adviser. You can do this by visiting the SEC website and clicking on the words "Check Your Investment Professional." Generally, the SEC considers firms that publish investment newsletters and that also engage in "auto-trading" to be investment advisers. If you cannot find proof that the firm is registered as an investment adviser, please let us know by using our online Center for Complaints and Enforcement Tips.

Independently Confirm Performance ? Be wary of claims of superior performance, especially ones that rely upon "cherry picking" successful recommendations and ignoring those that generated losses. You'll want to see a complete track record of how the firm's recommendations fared over several months to evaluate whether it is living up to its promises. If the firm isn't willing to provide this information, think twice about entrusting your accounts and your money to them.

Steer Clear of Testimonials ? Watch out if the investment newsletter's promotional materials, such as its website, contain "testimonials" from supposedly satisfied clients, especially if all the "testimonials" are full of praise. The SEC forbids registered investment advisers from advertising their services using testimonials.

Follow the Money ? Find out whether the firm offering the investment newsletter is being paid by others to recommend particular stocks. This is particularly important because you are giving the firm the ability to make trades in your brokerage account without asking your permission. You'll want to evaluate any conflicts of interest they might have in making recommendations.

Fully Vet the Broker ? Before you establish a brokerage account with the firm the newsletter recommends, be sure to thoroughly check out the disciplinary history of both the brokerage firm and any sales representative assigned to your account. You can do this by using FINRA's free BrokerCheck service and by calling your state securities regulator.

* * *

Be very wary if any firm claims to always make profits investing in the stock market, or if the firm claims to make extraordinarily high profits for customers. If it sounds too good to be true, it usually is! For more information on how to invest wisely and avoid costly mistakes, please visit the Investor Information section of our website.

This document provides IB customers with information regarding pre-arranged trading on U.S. futures exchanges along with hyperlinks to specific exchange rulebooks.

3073 | 10/27/2021

Notice Regarding Pre-Arranged Trading On U.S. Futures Exchanges

Pre-arranged trading results when a discussion is held by market participants prior to trade execution to ensure that a contra party will take the opposite side of a particular order. U.S. futures exchanges, including, but not limited to, CME, CBOT, NYMEX, ICE-US, CFE and Small Exchange, Inc. have regulations regarding the execution of pre-arranged trades. Interactive Brokers customers are responsible to know and abide by ALL exchange restrictions regarding pre-arranged trading. Interactive Brokers customers should not engage in pre-arranged trading unless such transactions are permitted by the relevant exchange. Customers should review the rules of each exchange to determine whether, and under what circumstances, such transactions are permitted. For your reference, various exchange rulebooks can be found at the following websites:

CME, CBOT, NYMEX
http://www.cmegroup.com/market-regulation/rulebook/

ICE Futures U.S.
https://www.theice.com/futures-us/regulation#Rulebookf

CFE
https://www.cboe.com/us/futures/regulation/

Small Exchange, Inc.
https://www.thesmallexchange.com/regulation-page


This document describes some of the risks inherent in security futures trading and how IB handles customer accounts that trade security futures.

4010 | 08/25/2020

Required Disclosures and Supplemental Agreement for Security Futures Trading at Interactive Brokers

  1. Introduction
    This information is being provided to you by Interactive Brokers ("IB") to ensure that you understand the risks inherent in trading security futures and also so that you understand how your security futures account is being handled by IB. You must review this document carefully and sign it at the bottom in order to be approved to trade security futures products through IB.

    You should be aware that security futures are highly leveraged investments and the risk of loss in trading these products can be substantial. Security futures are not suitable for all investors and you must carefully review this document and consult with a financial advisor, if necessary, to determine whether to trade security futures. IB does not provide any investment advice or recommendations, and you will be solely responsible for decisions regarding the security futures trading conducted in your account.

  2. Nature of Your Security Futures Account
    Under the federal regulations that apply to security futures, security futures positions may be held in a securities trading account subject to Securities and Exchange Commission (SEC) regulations or in a commodities trading account subject to Commodity Futures Trading Commission (CFTC) regulations.

    Because IB is fully registered with both the SEC and the CFTC, IB offers both securities accounts and commodities accounts. Most securities futures products are held in an IB securities account and are subject to SEC customer protection rules. However, certain securities futures products are held in a commodities account and are therefore subject to CFTC customer protection rules. Additional information regarding whether a particular securities future product is held in a securities or commodities account may be found on IB's website.

    The types of protections offered to investors for securities and commodities accounts are different. The different protections available to securities accounts and commodities accounts are described in Section 6 of the FINRA/NFA Standardized Risk Disclosure for Security Futures Contracts, discussed below.

  3. Standardized Risk Disclosure for Security Futures Contracts
    The National Futures Association (NFA) and the Financial Industry Regulatory Authority (FINRA) have jointly prepared a Standardized Risk Disclosure for Security Futures Contracts. It contains valuable information regarding trading of security futures contracts and you should review it carefully before investing in security futures.

    To review the FINRA/NFA Standardized Risk Disclosure for Security Futures Contracts, click here.

    NOTE: Viewing the Standardized Risk Disclosure requires Adobe Acrobat. To download Adobe Acrobat, click here. If you wish to receive a hard copy of the disclosure, call IB Customer Service at (877) 442-2757.

  4. Supplemental Agreement for Security Futures Trading
    The Supplemental Agreement provisions below relate to security futures trading in Customer' s IB account and are in addition to the terms and conditions of the IB Customer Agreement, and the Customer Agreement is incorporated herein by reference.

    By signing below, Customer acknowledges and agrees to the following:

    1. Customer acknowledges that Customer's U.S. and non-U.S. securities futures positions may be held in either a securities or commodities account, in IB's sole discretion. Customer acknowledges that U.S. and non-U.S. listed securities futures held in an IB securities account will receive the regulatory protections of a securities account. Customer acknowledges that U.S. and non-U.S. listed securities futures held in an IB commodities account will receive the regulatory protections of a commodities account.
    2. Customer acknowledges that IB may in the future, at its sole discretion, decide to hold customer security futures positions in IB securities accounts or commodities accounts and may not allow customers to make this choice. If IB determines to do this, it will provide required notice to customers of the change.
    3. Customer represents that Customer has received and reviewed the FINRA/NFA Standardized Risk Disclosure for Security Futures Contracts.
    4. Customer acknowledges that security futures are highly leveraged investments that are not suitable for all investors. Customer acknowledges that IB representatives are not authorized to provide investment, trading or tax advice and therefore will not provide advice or guidance on trading or hedging strategies involving security futures. Customers who need advice or guidance regarding security futures trading or investments should consult a financial advisor.
    5. Customer acknowledges that Customer must review and be aware of, and that Customer is bound by, the rules applicable to the trading of security futures, as established by FINRA, the NFA and the security futures exchanges. Customer represents that it is aware of and agrees not to violate any applicable position limits regarding security futures.

This document discusses some of the characteristics and risks involved in trading bonds including through IB.

This document provides important information for customers that trade mutual funds through IB.

This disclosure describes the features, risks and various types of Municipal Securities.

3230 | 02/06/2019

Disclosure Regarding Trading of Certificates of Deposit

Trading Certificates of Deposit ("CDs"), even those that are insured by the Federal Deposit Insurance Company ("FDIC"), has certain inherent risk. Please review and be aware of the following risk factors:

  1. Generally speaking, brokered CDs, unlike CDs purchased directly from your bank, cannot be redeemed prior to maturity. Accordingly, if you later decide you want to cash in the CD prior to maturity, you will need to sell the CD on the secondary market. IB cannot guarantee that there will continue to be a secondary market for any CDs you purchase. Even if such a secondary market does continue to exist at the time you wish to sell, there may be very little liquidity available for your CD. If you do choose to sell you may incur a substantial loss as a result, in addition to incurring commissions on such transactions.
  2. If market interest rates rise between the time you purchased the CD and the time you sell it, the market value of the CD can be expected to have declined, resulting in a loss of principal.
  3. You should carefully read and understand any call features associated with any CD prior to purchasing it. Long-term CDs often include a provision that allows the issuer to call the CD prior to maturity at a specified price. The issuer is most likely to do this in an environment where market interest rates have declined since the CD's issuance.
  4. Please note that the CD's offered for trading by Interactive Brokers are not FDIC-Insured.

This disclosure contains the additional important information regarding the characteristics and risks associated with trading small-cap stocks.

3210 | 09/29/2016

Risk Disclosure To Singapore-Based Customers Regarding Futures Contracts Or Leveraged Foreign Exchange Contracts Cleared At CME

The Monetary Authority of Singapore has authorized Chicago Mercantile Exchange Inc. ("CME") as a recognized clearing house in Singapore. Interactive Brokers ("IB") is providing this risk disclosure to you regarding the clearing of products at CME.

  • CME Clearing's operations are subject to the laws of the United States and regulations promulgated by the U.S. Commodity Futures Trading Commission ("CFTC");

  • The rights and remedies available to Singapore-based customers as stated in CME's rules, policies and procedures may be governed by U.S. law. Such rights and remedies under U.S. law may differ from those available to Singapore-based customers which are primarily regulated by Singapore laws;

  • Funds and collateral posted to a clearing intermediary registered as a U.S. futures commission merchant ("FCM") are subject to customer protection provisions of U.S. law;

  • U.S. law and regulation mandate segregation of customer positions and collateral from the positions and collateral of FCM clearing members and prescribe the customer segregation model for futures and swaps, respectively, at both the FCM- and clearing house-levels. The structure and insolvency law impacts of the U.S. customer protection regime may differ from those of Singapore;

  • Trades cleared at CME will be subject to U.S. business houses and settlement timelines as set forth in Exchange or Clearing House rules; and

  • Trades cleared at CME may be subject to U.S. tax law and applicable provisions of the U.S. Internal Revenue Code, which may have a different impact than Singapore tax law.

  • Any questions regarding the costs associated with products cleared at CME should be directed to Interactive Brokers LLC.

Nothing included in this statement should be regarded as legal advice. Tax advisors, legal counsel and Exchange or Clearing House rules, as applicable, should be consulted in all cases if you have questions concerning the conduct of your business or the impact of U.S. law or regulation thereon.


Important Characteristics and Risks of Participating in Interactive Brokers LLC's Fully-Paid Securities Lending Program

You should read these disclosures together with the (i) Interactive Brokers Master Securities Lending Agreement for Fully-Paid Lending Program (the "Agreement") and the (ii) Securities Account Control Agreement (the "Collateral Agreement") carefully before deciding to participate in IB's Fully-Paid Securities Lending Program.

Introduction

Interactive Brokers LLC ("IB") offers eligible customers the ability to lend certain of their fully paid and excess margin securities to IB for on-lending to other IB customers or to other market participants who wish to use these shares for short selling, to make required deliveries or other purposes. "Fully-paid securities" are securities in your account that have been completely paid for. "Excess-margin securities" are any securities in your account that, in aggregate, have a market value that exceeds 140% of your account's debit balance(s). In this disclosure and in the relevant agreements, we collectively refer to fully-paid and excess margin securities as "Fully-Paid Securities" or "Fully-Paid Shares". Lending your Fully-Paid Shares may be a way to increase the yield on your portfolio, because some shares are in high demand in the securities-lending market and borrowers are willing to pay for the use of your shares.

Securities Loaned Out By You May Not Be Protected by SIPC

The provisions of the Securities Investor Protection Act of 1970 ("SIPA") may not protect you as a lender with respect to securities loan transactions in which you lend your Fully-Paid Securities to IB. Therefore, the collateral delivered to you (and indicated on your account statement) may constitute the only source of satisfaction of IB's obligation in the event that IB fails to return the securities.

Stock Yield Enhancement Program: In the IB Stock Yield Enhancement Program, you permit IB to borrow any Fully-Paid Securities in your account and loan these securities out in the securities lending market. By participating in the IB Stock Yield Enhancement Program, you are granting to IB the discretion to borrow your Fully-Paid Securities without contacting you, obtaining your prior approval of any given loan or the amount of interest you will be paid for lending your Fully-Paid Securities. You will still be able to sell any securities in your account at any time, regardless whether they are currently on loan to IB. You will also be able to terminate your participation in the Stock Yield Enhancement Program at any time, automatically terminating any outstanding loans of Fully-Paid Securities. IB will pay you interest in connection with its borrowing of your Fully-Paid Securities. The interest rate IB pays you will approximate a percentage of the net income received by IB for lending your securities. IB's net income may be less than the gross income received by IB for relending your securities because of certain deductions and charges, as explained below. IB may make certain assumptions in computing the net amounts.

Basic Mechanics of a Fully-Paid Lending Transaction

When the lending transaction takes place, the securities borrowed will be debited from your account, though they will still be reflected on your account statements as securities on loan to IB. IB will provide you with collateral to secure IB's obligation to return the securities upon termination of the loan.

By participating in the Stock Yield Enhancement Program, you are not lending your Fully-Paid Securities directly to the ultimate borrower. IB will be the borrower in respect of each loan and will be responsible as principal for returning your securities to you upon termination of the loan, providing you collateral during the term of the loan and paying you interest monthly in respect of securities loaned to IB.

Securities Loaned Out by You Are Typically Used to Facilitate Short Sales

The type of securities that are generally attractive to borrowers in the securities lending market, and which generate the highest income potential, are "hard to borrow" securities. When you lend your Fully-Paid Securities, it is likely that such securities will be used to facilitate one or more short sales or satisfy delivery requirements resulting from short sales. Since you are holding the shares "long" in your account, the activity of short sellers potentially could affect the value of your holdings. You may elect not to permit securities that are the subject of a loan to be used in connection with a short sale of the subject securities. If you elect not to permit your securities to be used in connection with a short sale of the subject securities, IB will terminate any then-outstanding loan and un-enroll your account from the Stock Yield Enhancement Program to prevent the borrowing of the security for that purpose. If you do not want your fully-paid securities used to facilitate short sales, you should NOT participate in IB's Fully Paid Securities Lending Program.

You Continue to Own Loaned Shares and Have Market Risk on Those Shares

When you lend securities to IB, you continue to own the securities and you continue to have the market exposure inherent in ownership of the securities (i.e., if the share price increases while you own the shares but are lending them out, the value of the securities you are entitled to receive back upon termination of the loan will increase; if the share price goes down, the value of the securities you are entitled to receive back upon termination of the loan will decrease).

You Can Sell Your Loaned Securities At Any Time

Even though you have loaned your securities out, you can sell those securities at any time, just like any other securities in your IB account. Your sale of the securities will constitute a termination of the loan effective on the settlement date of the sale. You do not have to take any other action to terminate the loan or wait for the shares to be returned prior to selling them. Even if the shares are not returned in time to settle your sale of the shares, IB will be responsible for settling the sale, not you, and you will receive the proceeds from the sale of the shares on the normal settlement date for the sale.

Collateral for Loaned Securities

Pursuant to the Agreement, in exchange for the loaned securities, IB will deliver collateral to you. Collateral provided to you in respect of loaned securities will consist of cash and/or U.S. Treasury securities deposited in an account (the "Pledge Account") carried by IBKR Securities Services LLC (the "Securities Intermediary"), an affiliate of IB registered as a broker-dealer pursuant to section 15 of the Securities Exchange Act of 1934, as amended. The Securities Intermediary establishes the Pledge Account in the name of IB pledged for your benefit. Pursuant to the Agreement, funds and securities deposited in the Pledge Account are pledged as collateral to secure IB's obligation to return loaned securities to you. The Securities Intermediary, in accordance with the terms of the Collateral Agreement, maintains the Pledge Account and, in the event of an uncured default by IB, upon delivery of a notice of exclusive control by you to the Securities Intermediary, will accept instructions from you to deliver the collateral to you.

Prior to any delivery by you of a notice of exclusive control, pursuant to the Agreement and the Collateral Agreement, you authorize IB to make deposits to and withdrawals from the Pledge Account without further consent by you. Pursuant to the Agreement and applicable regulations, IB will mark the loaned securities to market at the close of trading on each business day and, if necessary, will either provide you additional collateral or withdraw excess collateral on the next business day so that the market value of the collateral is at least equal to 100% of the prior day's market value of the loaned securities. There is the risk that IB will default in some way, for example by becoming insolvent, which could result in IB failing to return borrowed securities to you. If IB's default results from something other than an act of insolvency, IB will have the right to cure that default.

If IB defaults and the market value of the loaned securities increases in value, the collateral provided by IB may be insufficient to fully collateralize the loaned securities. Because it acts as the custodian of the collateral in the Pledge Account, you may also be impacted by any default or insolvency of the Securities Intermediary. The most recent statement of financial condition of the Securities Intermediary is available at https://www.interactivebrokers.com/en/index.php?f=289.

You will not receive separate notices from the Securities Intermediary with respect to deposits to and withdrawals from the Pledge Account. Your IB account statement will reflect the current cash balance and U.S. Treasury securities custodied in the Pledge Account as of the statement date and will reflect all deposits to and withdrawals from the Pledge Account during the statement period. You may obtain information about the Pledge Account and confirm balances and positions in the Pledge Account directly with Securities Intermediary by email to ibkrss_saca_questions@ibkr.com.

You have a lien on collateral held in the Pledge Account granted to you under the Agreement, but you do not own the collateral and are not entitled to any market price increase in the collateral. The collateral must be returned to IB upon termination of the securities loan. A portion of the collateral will count as "buying power" for your IB securities account, however, neither the collateral in the Pledge Account nor any loaned securities will count as "equity" in your IB account for the purposes of initial margin or maintenance margin under the margin rules, including Regulation T of the Board of Governors of the Federal Reserve System and Rule 4210 of the Financial Industry Regulatory Authority.

Loan Rates (and therefore the Interest Rate You Will Receive) Are Subject to Frequent Change and Can Go Down (or Up) Significantly

Rates for "hard to borrow" and other securities change frequently, even daily, in the securities-lending market and this can reduce (or increase) the loan interest IB pays you. Likewise, IB may change the rate it pays you compared to the income that IB receives when it lends your securities to third parties. You will not have direct control over when to initiate or terminate loans of specific shares (including based on rate changes). However, you can always terminate your participation in the program (which will terminate all of your lending transactions) if you are unhappy with the interest rates you are receiving or the nature or frequency of rate changes. Please note, though, that if you terminate your participation in the Stock Yield Enhancement Program, you may not be permitted to re-join the program, or you may have to wait a certain length of time to re-join.

Potential Adverse Tax Consequences from Receiving Substitute Payments or Payments in Lieu of Distributions on Loaned Securities 1

When you lend your Fully-Paid Securities, you will be entitled to receive all distributions (as that term is defined in the Agreement) made on or in respect of the securities, such as cash or securities dividends, interest payments, securities received as a result of splits, spin-offs or similar distributions, and rights to purchase additional securities. In the event that the holder of a security borrowed from you is entitled to elect the type of distribution to be received from two or more alternatives, you shall be entitled to make such election by timely notification to IB. However, you will receive substitute payments (e.g., a cash substitute payment) in lieu of receiving dividends or other types of distributions directly from the issuer. Certain unique distributions may not be capable of being exactly replicated as a manufactured payment by IB. For example, cash payments in lieu of dividends may not be afforded the same treatment as qualified dividends for tax purposes and are likely to be taxed at a higher tax rate for U.S. taxpayers instead of the preferential qualified dividend rate. Special tax considerations may apply to loans of master limited partnerships, publicly traded partnerships or other securities with pass-through tax characteristics. IB may be required to withhold tax on payments in lieu of dividends on U.S. and foreign stocks and loan interest paid to you unless an exception applies. IB intends to treat the loan interest payments to you as interest payments, but different tax authorities may treat such payments differently.

You should consult a tax advisor regarding the tax implications of entering into the Agreement and lending securities to IB, the receipt of substitute payments under applicable federal, state and local tax laws, as well as any foreign tax regulations, circumstances where a securities loan could be treated as a taxable disposition of the loaned securities, and treatment of loan interest.

If you permit IB to borrow securities from you through the IB Stock Yield Enhancement Program and you are a U.S. taxpayer, IB may recall loaned shares from the borrower prior to a dividend, so as to reduce potential negative tax consequences to you. However, it is solely within IB's discretion to recall a loan and IB makes no guarantee it will recall a loan prior to a dividend. With respect to other corporate actions affecting loaned shares, non-cash distributions that you are entitled to receive in connection with ownership of loaned securities will be added to the loaned securities on the date of distribution and will be transferred to you at termination of the loan.

Loan Termination

IB may terminate your loan at any time in its sole discretion. When the loan is terminated, shares will be returned to your account. If you permit IB to borrow securities through the IB Stock Yield Enhancement Program, you will not have direct control over when to initiate loans of specific shares or when IB may choose to terminate any loan. You may terminate a loan at any time by selling the security that is the subject of the loan or requesting delivery or transfer of the security to another custodian. Under the terms of the Agreement, you may also terminate a loan by notice to IB; please note, however, that if the security remains in your account with IB and your account remains enrolled in the IB Stock Yield Enhancement Program, the security may be promptly re-borrowed by IB. If you would like to terminate a loan and prevent it from being reborrowed by IB, you can terminate your participation in the program (which will terminate all of your lending transactions) by unenrolling under "Stock Yield Enhancement Program" within the "Account Settings" section of the Client Portal.

Conflicts; Non-Exclusive Arrangement; IB Discretion to Borrow; Payments to Third Parties

IB is not required to borrow your securities and may, in its sole discretion, borrow from other parties securities equivalent to securities available to be borrowed from you. IB's choices both on the securities it borrows and how it chooses to use those securities impact the loan interest payable by IB to you. If you participate in the Stock Yield Enhancement Program and maintain a debit balance in your account, IB may rehypothecate your securities in accordance with your margin account agreement with IB without paying you loan interest, rather than borrow your securities pursuant to the Agreement. Similarly, if IB borrows securities from you pursuant to the Agreement and you thereafter incur a margin debit balance, IB may terminate the Loan and then rehypothecate the securities that had previously been the subject of a loan without paying you loan interest. IB may pay part of the loan income it earns on shares borrowed from you to third parties such as your financial advisor or introducing broker who may introduce your account to IB. These payments may reduce the interest rate you receive for the entire duration of the loan.

Key Factors Influencing the Amount of Compensation IB May Earn

The key factors that influence the amount of compensation IB may earn from borrowing securities loaned by you are (i) the availability of the securities for lending in the marketplace relative to the demand to borrow such securities; (ii) then-current interest rates, which impact what IB may earn from re-investing cash collateral received from counterparties to which it lends securities; (iii) commissions, interest and other fees IB may earn from customers that borrow securities from IB to sell short through IB or in accounts carried by IB.

Key Factors Influencing Loan Interest Paid to You

You will be paid loan interest by IB for the loan of your securities. The interest payable to you in respect of any particular loan as of a given date is detailed on your daily account statement. You will not receive any portion of any other compensation IB may earn in connection with the re-lending of your securities, including, without limitation, any interest IB may earn on collateral provided to you, any interest IB may earn on collateral provided to it by counterparties to which it re-lends the loaned securities, any fees IB may earn from counterparties to which it re-lends the loaned securities, or any commissions IB may receive in connection with any executions of transactions for the account of parties that borrow securities from IB. The key factors that influence the amount of loan interest paid to you is (i) the availability of the securities for lending in the marketplace relative to the demand to borrow such securities; (ii) the average loan interest earned by IB in lending securities of the same class to third parties during the term of your loan; (iii) current interest rates; and (iv) whether IB shares a portion of the compensation it earns from re-lending securities borrowed from you with a third party such as your introducing broker or financial advisor. The loan interest rate may be changed from time to time in IB's sole discretion and different rates may be paid to different customers based on a variety of factors, including the size of the customers' loan portfolios and the types of Fully-Paid Securities available in the customers' accounts. If you participate in the IB Stock Yield Enhancement Program and IB borrows your Fully-Paid Securities, IB will accrue interest for your account daily and credit your account with the loan interest monthly.

There Is No Guarantee That You Will Receive the Best Loan Rates for Your Shares The securities lending market is not a standardized or transparent market. Securities lending transactions generally take place "over the counter" rather than on organized exchanges where prices and transactions are transparent. IB cannot and does not guarantee that it will pay the highest rate for borrowing your shares. IB may not have access to the markets or counterparties that are offering the most favorable rates, or may be unaware of the most favorable rates. IB, or its affiliates through which it conducts certain securities-lending activities, will typically receive a higher rate from its securities-lending counterparties than it pays to you for the loan of your securities, thus earning a spread. You may always terminate your participation in the program if you are unhappy with the rates you are receiving.

Loss of Voting Rights With Respect to Loaned Securities

You may lose the right to vote, or to provide any consent or to take any similar action with respect to, loaned securities in the event that the record date or deadline for such vote, consent, or other action falls during the term of any loan.

IB's Right to Liquidate Securities Upon Your Default

IB will have the right to liquidate any securities loan upon an event of Default (as that term is defined in the Agreement) by you, which include, without limitation, your: (a) applying for or consenting to, or becoming the subject of an application for, the appointment of or the taking of possession by a receiver, custodian, trustee, or liquidator of all or a substantial part of your property; (b) admitting in writing your inability, or becoming generally unable, to pay your debts as such debts become due; (c) making a general assignment for the benefit of your creditors; or (d) filing, or having filed against you, a petition under Title 11 of the United States Code (the Bankruptcy Code), or having filed against you an application for a protective decree under Section 5 of SIPA, unless the right to liquidate such transaction is stayed, avoided, or otherwise limited by an order authorized under the provisions of SIPA or any statute administered by the SEC.

NOTES

1. IB does not provide any investment, tax or trading advice. The information in this paragraph is general information only and does not take into account your personal circumstances. You should speak to an independent tax expert to understand the tax implication to you (if any) as a result of participating in the program.

A. The Collateral provisions of this disclosure will apply upon transition of your account to the new collateral arrangement for IB's Fully-Paid Securities Lending Program, which will take place on or prior to April 22, 2021. Prior to the transition of your account, please see the Collateral provisions of the Disclosure at https://www.interactivebrokers.com/Universal/servlet/Registration_v2.formSampleView?formdb=4059

4062 | 6/5/2019

Disclosure Regarding Interactive Brokers Pre-Borrow Program

Introduction: Interactive Brokers ("IB") offers eligible customers the ability to borrow shares in advance of selling such shares short (a "pre-borrow" transaction). Please read the following disclosure carefully for important information about the pre-borrow program.

Basic Nature of Transaction: When you pre-borrow shares through IB, you will be engaging in a securities borrowing transaction with IB as your counterparty and you will be charged an interest rate each day for the borrowed shares. The interest rate may change as often as daily based on changes in market conditions, changes in demand for the shares in the securities lending market, and other factors.

All Borrow Rates Are Merely Indicative Until Confirmed on Daily Statement; Rates May Change Daily: IB may provide indicative interest rates for pre-borrows, but such rates are indicative only and may be higher or lower by a material amount than the actual rate that you will be charged if you borrow securities, which will be determined at or near the end of the trading day and is subject to change each day thereafter.

By using the IB Trader Workstation or other means to initiate a pre-borrow transaction, you are agreeing to borrow securities for at least one day and you are agreeing to pay whatever interest rate IB charges you in its sole discretion for the loan of the securities (i.e., your request to pre-borrow shares is similar to a "market order"). The rate for your loan will be determined by IB based on a number of factors, including but not limited to demand in the securities lending market, rates charged to IB by its counterparties and borrowing and lending activity by other IB customers. After you have requested a pre-borrow and IB has confirmed the loan to you of the shares during the trading day, IB may provide you with an indicative rate for the loan. Again, this rate is only indicative and the final interest rate is subject to change and will not be determined until at or near the end of the trading day. The interest rate for each day and transaction is not final until it is reported to you on your daily IB statement.

Return of Borrowed Shares: If you wish to return shares after you have borrowed them, you may do so beginning on the next trading day (you cannot return borrowed shares on the same day as the original pre-borrow). In order to return shares on a given day and terminate the borrowing costs, you must initiate a return of the shares by the cut-off time specified on the IB website or by 10:50 a.m. Eastern U.S. time, whichever is earlier.

Pre-Borrow Transactions And Short Sale Transactions Are Separate And Independent: When you pre-borrow shares, the transaction does not automatically involve a short sale of such shares. You must engage in a separate short sale trade to open a short position. Likewise, if you pre-borrow shares and then sell the shares short, and later you cover the short sale by purchasing shares, this will not automatically extinguish the borrow transaction. I.e., you will still be borrowing the shares and in order to return them and stop paying interest for borrowing them, you must separately initiate a return of the borrowed shares using the Trader Workstation or other means specified by IB. If, after pre-borrowing shares, you do not sell them short for settlement within 5 days of the pre-borrow, IB may, but is not required to, terminate the loan and return the shares.

If you have an existing short sale position and you subsequently pre-borrow shares of the same security, IB may, but is not required to, use the pre-borrow to support the existing short position (depending on when and if you engage in other short sales).

No Guaranteed Term for Borrows; Borrowed Shares Subject to Recall at Any Time: Pre-borrowing shares does not give you the right to keep the borrowed shares for any specific period of time. The loan can be terminated by IB at any time and the borrowed shares will be taken from your account and returned. Among other reasons, this may happen if IB's external stock loan counterparties demand the shares back from IB. If you have pre-borrowed shares and then sold the shares short and IB thereafter terminates your borrow, this will not automatically terminate your short position (IB will not necessarily buy-in the shares you sold short). IB may be able to continue to provide shares to support your short position. If you pre-borrow shares and the loan is later terminated and if IB cannot otherwise find shares to continue to support your short position, you short position will be subject to being bought-in.

Commissions and Interest Rates: In addition to the interest rate you pay for borrowing shares, you will be charged a commission (at the commission rate described on IB's website) for each pro-borrow transaction. While IB will attempt to provide competitive interest rates for your pre-borrow transactions, IB does not guarantee that the rate will be the most favorable rate available. When you pre-borrow shares, IB may lend you shares it has available or may engage in separate transactions with external stock loan counterparties to support the loan to you. In either instance IB and/or its affiliates may earn a profit and/or a spread over market interest rates on the loan of shares to you.

Borrowing charges will be applied to your account on the same day that you initiate a pre-borrow transaction. This is true even though a short sale of those same shares will not settle until three days after the trade date. Thus, pre-borrowing before a short sale will lead you to incur several extra days of interest charges for the borrowed shares compared to an ordinary short sale done without a pre-borrow.

No Voting Or Other Rights: You will not have the right to vote, or to provide any consent or to take any similar action with respect to securities you borrow even if the record date or deadline for such vote, consent or other action falls during the term of the loan.

SIPC May Not Protect Pre-Borrowed Shares Prior to a Short Sale: Prior to using pre-borrowed shares for a short sale, such shares may not be protected under the provisions of the Securities Investor Protection Act of 1970.

4404 | 10/27/2021

FINRA Investor Protection Information Resources

Financial Industry Regulatory Authority ("FINRA") Conduct Rule 2267 requires that Interactive Brokers provide customers with certain information regarding its Public Disclosure Program. This information is included below:

The FINRA Public Disclosure (BrokerCheck) Program Hotline Number is (800) 289-9999.

The FINRA Website address is: http://www.finra.org

Customers who wish to obtain a brochure that describes FINRA BrokerCheck should contact FINRA at the phone number listed above or through the FINRA website.

This notice provides information on the Background Affiliation Status Information Center (BASIC) maintained by the National Futures Association (NFA). BASIC contains Commodity Futures Trading Commission (CFTC) registration and NFA membership information and information concerning futures-related regulatory and non-regulatory actions contributed by NFA, the CFTC and the U.S. futures exchanges.

4035 | 6/5/2019

Customer Consent to Receive Mutual Fund Information Electronically

In accordance with Customer’s consent to receive Electronic Records and Communications electronically pursuant to the IB Customer Agreement, Customer hereby consents to receive all mutual fund documents and information, including, but not limited to, prospectus’, statements of additional information, periodic statements and proxy solicitation materials (collectively, “Mutual Fund Information”), in electronic form. Mutual Fund Information may be sent to Customers via e-mail, or for security purposes may be posted on the IB website or a secure third-party website with an e-mail notification sent to the Customer regarding how to access and retrieve such information. Customer consents to receiving mutual fund prospectuses electronically, including via e-mail containing a link to the prospectus. Customer’s consent with respect to Mutual Fund Information will apply on an ongoing basis and for every tax year unless withdrawn by customer. Customer may withdraw such consent at any time by providing electronic notice to IB through the IB website. If Customer withdraws such consent, IB will provide required Mutual Fund Information in paper form to Customer. However, IB reserves the right to require Customer to close Customer’s account.


Customer Consent to Reinvest Dividends/Capital Gains


In the event a mutual fund held in Customer's account makes a dividend or capital gain distribution, Customer hereby consents to such dividend or capital gain distribution being reinvested in the distributing mutual fund. Should the Customer's account no longer be open at the point of dividend payment or capital gain distribution, Customer hereby consents to having the account credited with the equivalent of such dividend or capital gain distribution in the form of cash.


This document describes how IB uses personal information of its customers and efforts to protect such information.

This document discusses IB's plans for continuing operations in the event of a significant business disruption.

This disclosure provides information regarding option orders of over 500 contracts that may be executed using the International Securities Exchange ("ISE") block Order Solicitation Mechanism.

3076 | 4/1/2021

Nasdaq ISE Disclosure for Option Orders Over 500 Contracts

Interactive Brokers is required to provide to you the following disclosure regarding option orders of over 500 contracts that may be executed using the Nasdaq ISE (ISE) Block Order Solicitation Mechanism:

When handling an order of 500 contracts or more on your behalf, Interactive Brokers may solicit other parties to execute against your order and may thereafter execute your order using the ISE's Solicited Order Mechanism. This functionality provides a single price execution only, so that your entire order may receive a better price after being exposed to the Exchange's participants, but will not receive partial price improvement. For further details on the operation of this Mechanism, please refer to Nasdaq ISE Rule Options 3, Section 11, which is available at https://listingcenter.nasdaq.com/rulebook/ise/rules.

4407 | 11/29/2018

Interactive Brokers Group Cyber Security Notice

Interactive Brokers Group ("IB") maintains certain personally identifiable information regarding clients in its electronic databases to facilitate the processing of transactions on behalf of its clients to comply with rules, regulations and laws. The personally identifiable information stored on IB's network is protected from unauthorized access, treated as confidential, and handled according to the terms of the Interactive Brokers Group privacy policy.

IB attests that personally identifiable information and customer information stored on our systems is protected as follows:

  • IB's Internet-facing servers are protected from access through firewalls and/or other security devices.
  • The firm's critical servers reside on isolated networks that have no direct Internet access.
  • IB internal systems that store customer personally identifiable information locks people out of internal systems after a few unsuccessful login attempts.
  • Access to shared drives is restricted to active employees and pre-authorized individuals on a "need to know" basis within IB through password-protected logins to the network.
  • Encryption technology is employed for data transmissions across public networks and on portable media devices.
  • System backups reside either in secure facilities at IB or in secure storage provided by a third party specializing in secure information management.
  • Personally identifying information is generally not stored on laptop computers or other portable devices. Further all data stored on laptop hard drives is encrypted.
  • All end-station computers use antivirus software that is regularly updated.
  • Operating System security patches are applied to all systems on a regular basis.
  • Employees are trained on the requirements to protect personal information.
  • IB has adopted written policies and procedures, reasonably designed to protect personally identifiable information.

IB further attests that should a breach occur, management will promptly take action to secure information, mitigate the breach, and notify, on a timely basis, any customers whose personally identifiable information could have been compromised.

3081 | 4/1/2021

Notice Regarding USA Patriot Act Section 311

Pursuant to U.S. regulations issued under Section 311 of the USA PATRIOT Act, Interactive Brokers will require additional special measures for customers establishing, maintaining, administering or managing an account for, or on behalf of any Section 311 entities. The most recent listing of 311 entities as promulgated by FinCEN, as of March 30, 2021, is as follows:

  • ABLV Bank, AS
  • Bank of Dandong
  • Any bank or financial institution of Burma
  • Commercial Bank of Syria (includes Syrian Lebanese Commercial Bank)
  • Any bank or financial institution of the Democratic People's Republic of Korea
  • FBME Bank Ltd.
  • Halawi Exchange Co.
  • Any bank or financial institution of the Islamic Republic of Iran
  • Kassem Rmeiti & Co for Exchange

Any customers involved with 311 entities will be subject to further review and determination on whether Interactive Brokers will continue the relationship. Additionally, your account with Interactive Brokers may not be used to provide services for the above that would violate other U.S. regulations.

Interactive Brokers may, from time to time, update this notice to include jurisdictions or entities that are added to FinCEN's Section 311 list. Current listings of entities subject to final or proposed rules under Section 311 can be found on the FinCEN website.

This document provides information regarding Customer orders that are routed to non-electronic exchanges.

4013 | 11/15/2022

Floor/Pit Based Exchanges - Risk Disclosure


Certain exchanges to which you may route orders through Interactive Brokers (“IB”) are non-electronic, open outcry market places. On such exchanges, orders submitted via the TWS will be routed to the floor electronically but are thereafter delivered into the trading pits manually and are subject to time disadvantages inherent with such markets. Trades execute when 2 brokers meet in the trading pit and verbally agree on a trade price and other trade details.

Traders acting on these exchanges must be aware of the following:
  • All order actions (new orders, modifications, cancellations) are subject to delays relating to the delivery process. The delays are usually 30-60 seconds but can last several/many minutes in busy conditions such as at the open or close of the trading session.

  • Frequent order modifications (price or quantity) will often result in poor executions since a modification requires that the pre-existing order be cancelled and a new order instated. If modifications are submitted faster than they can be processed, there is a strong likelihood of poor or missed executions.

  • There is no time or price priority for orders. It is possible that an order will not be executed even though trades are reported at, or better than, the expected price.

  • Market orders may be executed at unfavorable prices. Use of market orders is permitted, but not recommended.

  • Cancelled orders may be executed. It is not uncommon that the report of an executed order is delayed due to market volume. When the cancel request is sent, the pit broker is then forced to report the status which may be “filled, too late to cancel”.


IB recognizes the limitations of open outcry trading as compared to electronic trading and has designed the TWS system to remove as many of the problems as possible. Nevertheless, traders should not expect a similar performance from the IB brokerage system for floor-traded markets as for electronic markets.

I acknowledge the limitations of floor-traded markets and agree that IB will not be liable for delays and errors outside of its control relating to the manual open outcry trading process.

3085 | 5/4/2023

Risk Disclosure Regarding Short Selling of Mexican Stocks

There are risks associated with short selling Mexican stocks that may expose you to significant losses. This strategy is not suitable for all customers. Please read the following carefully:

  1. Selling stock short is a risky strategy for investors.

    • There is unlimited risk when shorting stock as stocks may continue to increase in price indefinitely.
    • There is risk that the company will effect a corporate action while you are short the stock and you will be responsible for paying for any dividends or other distributions.
  2. Short sales must be done in a margin account and are subject to IB's margin requirements.
  3. Prior to selling short, IB must confirm that it can locate shares of the stock to borrow for delivery. Any fees incurred by IB for borrowing stock on your behalf will be passed on to you.
  4. If IB cannot borrow stock (or re-borrow after a recall notice from the lender) IB may buy shares of stock on your behalf to cover short positions and you will be liable for any losses/costs.
  5. Borrowing stock requires that you post collateral. The lender and IB determine which type of assets may be posted as Collateral. Collateral is returned to you when the shares are returned to the lender.
  6. The lender of the shares reserves the right to recall the shares at any time. Should a recall of shares occur, IB will attempt to replace the previously borrowed shares with shares from another source. If IB is unable to borrow sufficient shares, IB reserves the right to buy shares on your behalf to cover short positions. Additionally, the lender may execute a buy-in transaction in the marketplace and notify IB of the execution price. IB, in turn, allocates the buy-in to customers based upon their settled short stock position. You will be liable for any losses/costs.
  7. Based on the manner in which a buy-in may be required to be executed, significant differences between the price at which the buy-in transaction was executed and the prior day's close may result. These differences may be especially pronounced in the case of illiquid securities.
  8. Based on the manner in which a buy-in and a third party is allowed to execute a buy-in, significant differences between the price at which the buy-in transaction was executed and the prior day's close may result. These differences may be especially pronounced in the case of illiquid securities.
  9. Short positions are subject to liquidation to meet any margin deficiency that may arise in your account(s) and IB may not provide notice prior to such liquidation.

4244 | 4/1/2021

Direct Debit Supplement to Interactive Brokers LLC Customer Agreement

This Supplement (the "Supplement") to the Interactive Brokers LLC Customer Agreement is made between Customer ("you") and Interactive Brokers LLC ("IBKR", "we", or "us") and sets forth the conditions under which IBKR agrees to permit you to direct debit funds from your IBKR brokerage account ("Brokerage Account") via an external account at a U.S. bank or other U.S.-resident financial institution ("External Account") using the Automated Clearing House (ACH) network (the "Service"). You agree to be legally bound by the terms and conditions set forth in this Supplement.  

You understand and agree that you continue to remain bound by the terms and conditions of the IBKR Customer Agreement (as amended from time to time, the "Customer Agreement") which governs your Brokerage Account, of which this Supplement forms a part (such Customer Agreement, together with this Supplement and any other supplements, annexes, schedules or exhibits, the "Agreement"), and that all terms and conditions in the Customer Agreement, including, without limitation, the "Mandatory Arbitration" provision thereof, shall also govern the relationship between IBKR and you with regard to the Service and any other service, transaction or relationship contemplated by this Supplement. Unless otherwise defined, capitalized terms used but not defined in this Supplement shall have the meanings assigned in the Customer Agreement.

  1. General Features of the Service: Through the Service, you may instruct another U.S. financial institution or payment system (the "External Correspondent") to direct debit your Brokerage Account in a specified amount for the benefit of an External Account, and that debit will be submitted to IBKR through its agent bank by the External Correspondent for payment via the ACH network (a "Direct Debit"). Direct Debits may be withdrawn up to the available cash balance in your Brokerage Account (the "Available Cash Balance"), subject to any limits under Section 7 of this Supplement. In addition, if your Brokerage Account is a margin account, to the extent that you do not have sufficient Available Cash Balance, your Brokerage Account will automatically make available funds, by incurring a new margin debit in your Brokerage Account, up to your cash withdrawal limit (subject to any limits under Section 7 of this Supplement), pursuant to the terms of your Customer Agreement (the "Margin Spending Limit" and as added to your Available Cash Balance, your "Spending Power").

  2. ACH Authorization: You hereby authorize IBKR to (i) honor Direct Debit instructions received via the ACH network by our agent bank with respect to your Brokerage Account (a remotely-initiated transfer of funds from your Brokerage Account to an External Account) and (ii) initiate returns of erroneous, unauthorized, or duplicate Direct Debit entries or Direct Debit entries that exceed your Spending Power. This authorization will remain in full force and effect until IBKR has received written notification from you of its termination. IBKR must receive this notification of termination in a time and manner so as to give IBKR and the other financial institutions a reasonable opportunity to act on your instructions.

    We will send you a notification in writing (a "Debit Notice") anytime we receive a Direct Debit request for your Brokerage Account. Currently, we will send Debit Notices by SMS text message. In the future we may offer other ways to receive Debit Notices. We may add such other methods to the terms of this Agreement at any time by notifying you in writing or by providing notice on our website at www.ibkr.com of such change.

    You should immediately review any Debit Notice you receive from us. If you do not recognize the transaction in any such Debit Notice, you should notify us immediately (but in any event no later than 2pm Eastern Time on the Business Day (Monday through Friday, excluding federal and legal banking holidays) following the day of our Debit Notice) by cancelling the transaction via the functionality in your IBKR mobile app on your smartphone ("IBKR Mobile"). We may provide alternative means to cancel a Direct Debit in the future. We will notify you in writing or provide notice on our website of any such alternative mechanism (the term IBKR Mobile, as used below, shall encompass any such alternative mechanism as well), and such notice shall serve to amend the terms of this Agreement to encompass such alternative method.

    If we receive a Direct Debit request for your Brokerage Account in excess of a certain threshold dollar value (the "Threshold Amount"), we will automatically reject such request unless you explicitly authorize and approve such specific Direct Debit via IBKR Mobile by no later than 2pm Eastern Time on the Business Day following the day of our Debit Notice, and we will note that fact in our Debit Notice to you for such Direct Debit.

    The Threshold Amount is currently $1,000, but we may change that at any time without notice to you. We will endeavor to notify you in writing promptly of any such change to the Threshold Amount, but our failure to so notify you will not negate any such change or result in any liability to you.

    We may, from time to time, add additional security measures, in our sole discretion, with or without notice to you. Such security measures may, in some instances, result in a Direct Debit being delayed or rejected. We will not be liable to you for any loss or damages you incur as a result of our delay or rejection of your Direct Debit as the result of such security measures.


  3. Use and Purpose: For security reasons, we may limit the amount or number of transactions you can make using the Service. You may not use the Service for any illegal transaction. If we suspect that you have used the Service to conduct an illegal transaction, we reserve the right to cancel your enrollment in the Service. We reserve the right to decline any Direct Debit request at any time, even if there is sufficient Spending Power available in the Brokerage Account to settle the transaction, if, in our sole discretion, we believe that a transaction is for an improper purpose, is fraudulent, or is otherwise not within the terms of the Service as set forth by IBKR from time to time. IBKR will not be liable for any incidental or consequential damages incurred by you or any other person as a result of IBKR declining any Direct Debit request under such circumstances.

  4. Available to Withdraw: Your Spending Power may fluctuate from day to day because it is dependent upon changes in the Available Cash Balance (and, in the case of margin accounts, available Margin Spending Limit) in your Brokerage Account. Promptly after IBKR is notified of a Direct Debit request, your Spending Power is reduced. You promise not to make a transaction that exceeds your Spending Power. If you attempt to make a transaction that will exceed your Spending Power, the transaction will normally be declined. If, for any reason, such transaction is not declined, you agree to be responsible for such transaction to the full extent permitted under the applicable Agreement(s).

  5. Payment for Direct Debit Transactions: On a daily basis, IBKR will receive notice of the direct debit transactions you have initiated using the Service. Funds will automatically be withdrawn from your Brokerage Account to satisfy the debits that are settling that day. You authorize IBKR to charge your Brokerage Account in order to pay for transactions that you initiate through an External Account. Each transaction shall be considered to be your direction to us to charge your Brokerage Account in order to settle the Direct Debit transaction you have initiated. When you make a payment using the Service, the charge or reduction to your Spending Power generally occurs immediately upon receipt by IBKR of the Direct Debit request.

  6. Payment of Items: All transactions made using the Service will be accumulated daily, and charged to your Brokerage Account in any order we may choose. We will debit your Brokerage Account in the transaction amount on the day a transaction settles, including any fees or other charges associated with the transaction. If you do not have a sufficient Available Cash Balance at the time a transaction settles, if you have a margin account, we will settle the transaction by increasing your current margin debit (if any), up to your Margin Spending Limit. If you do not have sufficient Spending Power to settle a Direct Debit request, we will decline the request. If we inadvertently approve and settle a Direct Debit for which you lack sufficient Spending Power, you hereby authorize us to attempt to reverse the transaction with the External Correspondent. If we are unable to do so, you understand that you will be liable for the full amount of the Direct Debit, even if it exceeded your Spending Power at the time of settlement.

    You understand that margin transactions carry substantially increased risk, including the risk that we will be obligated to liquidate your Brokerage Account in part or whole if your Brokerage Account falls below its minimum maintenance margin level, and that you will be charged interest on any margin debit you incur. You understand that IBKR generally will not issue margin calls in connection with margin deficiencies and that you may not be able to transfer funds into your Brokerage Account quickly enough to prevent liquidation in the event that your Brokerage Account falls below maintenance margin requirements on either an intraday or overnight basis. Please read the section of your Customer Agreement titled "Margin" for more details about the risks of margin trading and IBKR's policies in connection with margin deficits, margin calls, and liquidation.

  7. Limitations on Frequency and Dollar Amounts of Transactions: For security reasons, we may further limit the number or dollar amount of Direct Debit transactions you can make per day, or the maximum amount of any single Direct Debit transaction, using this Service. Current limits can be found at https://www.ibkr.com.

  8. Recurring Transactions: If you intend to use this Service for recurring transactions, you should monitor your balance and ensure you have funds available in your Brokerage Account to cover the transactions. "Recurring transactions" are transactions that are authorized in advance by you to be charged to your Brokerage Account at substantially regular intervals. We are not responsible if a recurring transaction is declined because you have not maintained a sufficient balance in your Brokerage Account to cover the transaction. If you have authorized an External Correspondent or merchant to make a recurring transaction and you do not expect to have sufficient Spending Power in your Brokerage Account to cover the transaction, you also should contact the applicable External Correspondent or merchant in order to stop the recurring transaction.

  9. Authorization to Share Information With Third Parties: We will not reveal any information to third parties about your Brokerage Account or any transaction information in connection with your participation in this Service, EXCEPT you hereby authorize us to share information concerning your transactions: (1) with our affiliates and agents for the purpose of servicing your participation in the Service; (2) where it is necessary for completing your transactions or providing you other services; (3) to other persons and entities in order to resolve disputes arising from transactions; or (4) in any other circumstances contemplated by our Privacy Policy, as furnished to you separately and updated or amended from time to time by us.

  10. Your Liability: You should tell us AT ONCE (by calling 1-866-532-4654) and submit a Written Statement of Unauthorized Debit to Interactive Brokers LLC (by mailing Interactive Brokers Direct Debit, 209 S. LaSalle Street, 10th Floor, Chicago, IL 60604 or electronically via Account Management) if you believe any unauthorized Direct Debit transactions have been made in your Brokerage Account.

    If you tell us within 2 Business Days after you learn of an unauthorized Direct Debit transaction and/or the loss or theft of your IBKR Mobile credentials, you can lose no more than $50 if someone initiated a Direct Debit and/or used your IBKR Mobile credentials to approve a Direct Debit without your permission. If you do NOT tell us within 2 Business Days after you learn of an unauthorized transaction and/or of the loss or theft of your IBKR Mobile credentials, and we can prove we could have stopped someone from engaging in an unauthorized Direct Debit if you had told us, you could lose as much as $500.

    If your statement shows Direct Debits that you did not authorize, tell us at once. If you do not tell us within 60 calendar days after the statement showing the first unauthorized transaction was made available to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods.

  11. Our Liability: If we do not complete a transfer to or from your Brokerage Account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance: (1) if, through no fault of ours, you do not have enough Spending Power to make the transfer; (2) if the system was not working properly and you knew about the breakdown when you started the transfer; (3) if circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken; (4) there may be other exceptions stated in our Agreement with you.

  12. Unauthorized Transaction: In case of errors or questions about your Direct Debits, telephone us at 1-866-532-4654, or write us at Interactive Brokers LLC, ATTN: Interactive Brokers Direct Debit, 209 S. LaSalle Street, 10th Floor, Chicago, IL 60604, or log into your Brokerage Account as soon as you can. We must hear from you no later than 60 calendar days after the FIRST statement showing the error becomes available. When you contact us: (1) Tell us your name and Brokerage Account number; (2) Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information; (3) Tell us the dollar amount of the suspected error; (4) Fill out and sign the Written Statement of Unauthorized Debit that will be provided to you and submit it to Customer Service electronically. If you report an unauthorized transaction to us orally, we will still require you to submit a Written Statement of Unauthorized Debit (as set forth above).

    We will tell you the results within three Business Days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

  13. No Warranty: In the event that you pay a third-party, directly or indirectly, for any goods or services through the use of the Service, we are not responsible for the delivery, quality, safety, legality or any other aspect of such goods or services. Any disputes regarding any such goods or services must be addressed to the merchants from whom any such goods and services were purchased.

  14. Notices: Notices and other communications relating to your Brokerage Account in connection with your use of the Service (including, without limitation, communications relating to your Spending Power) will be provided electronically in accordance with your Customer Agreement.

  15. Termination of the Service: IBKR or you may terminate the Service contemplated under this Supplement at any time. You shall remain responsible for authorized charges that arise before or after termination of the Service. In the event of termination for whatever reason, you shall promptly destroy all property relating to the Service.

  16. Disputes Involving Your Brokerage Account: This Supplement shall be treated for all purposes as forming a part of the Customer Agreement. Any dispute between you and IBKR, arising from any of the services contemplated by this Supplement, shall be governed by the pre-dispute mandatory arbitration provision of the Customer Agreement.

THE CUSTOMER AGREEMENT, WHICH THIS SUPPLEMENT FORMS A PART OF, CONTAINS A PRE-DISPUTE ARBITRATION CLAUSE IN PARAGRAPH 34. BY SIGNING THIS SUPPLEMENT, I ACKNOWLEDGE THAT THIS AGREEMENT CONTAINS A PRE-DISPUTE ARBITRATION CLAUSE AND THAT I HAVE RECEIVED, READ AND UNDERSTOOD THE TERMS THEREOF.

4194 | 10/28/2021

Interactive Brokers Negative Contract Prices Risk Disclosure


Interactive Brokers ("IBKR") wishes to remind you of the risks associated with trading in the futures markets if the market moves against your futures positions. These risks may be particularly acute in those instances in which a futures contract settles at a negative price. The circumstances that lead a futures contract to settle at a negative price may vary. For example, a futures contract with a physical commodity as the underlying asset may settle at a negative price when the supply of the commodity faces physical constraints in distribution or storage to such an extent that some suppliers are prepared to pay others to physically take away the commodity. Futures contracts across other asset classes also may settle at negative prices for a number of reasons. Regardless of whether prices are positive or negative, you should keep in mind that if the market moves against your futures positions:

  • You may sustain a total loss of the funds that you have deposited to establish or maintain your positions and may incur additional losses beyond these amounts;
  • You may be called upon to deposit additional margin funds, on short notice;
  • If you do not provide the additional funds within the time we require, your positions may be liquidated at a loss; and
  • You will be liable for any resulting deficit in your account.

4249 | 7/27/2022

Risk Disclosure for Trading Digital Assets with Paxos Trust Company Through IBKR's Platform

Important Information Regarding Trading Digital Assets with Paxos

Interactive Brokers LLC ("IBKR") offers clients the ability to access digital asset trading and custody services (the "Paxos Services") in an account in client's name (the "Paxos Account") at Paxos Trust Company ("Paxos") through IBKR's electronic trading software. The digital assets in your Paxos Account are carried at Paxos while all other assets are carried in your IBKR account. Fiat currency is carried in your IBKR account and may also be carried in your Paxos Account if you designated that account as your source of payment for digital asset purchases pursuant to the Supplement to Interactive Brokers LLC Client Agreement in Connection with Trading Digital Assets with Paxos Trust Company Through IB’s Platform (“Payment Source Account”) and moved fiat currency into that account in anticipation of purchasing digital assets. You should carefully consider the risks below before making a decision to utilize the Paxos Services.

  1. Trading Of Digital Assets is Risky. Digital asset prices are highly volatile and can rise or fall dramatically and quickly. If you hold a position in digital assets and the value of the asset falls, you can lose money. You should carefully consider your financial circumstances and your risk tolerance before trading digital assets with Paxos and you should not trade digital assets unless you have the financial capability to sustain losses if they occur. You should be aware that you may sustain a total loss of the assets in your Paxos Account.

  2. No Investment Advice, Recommendations, Or Tax Advice. IBKR does not provide investment, tax, or trading advice or recommendations. By making digital assets available to you, neither IBKR nor Paxos makes any assessment, representation, or warranty concerning the appropriateness or suitability of digital assets for your financial circumstances. The Paxos Services are "execution only." IBKR and Paxos will not advise you on any transaction. Neither IBKR nor Paxos will assess whether your transactions are suitable for you or help you avoid losses. You should obtain your own financial, legal, taxation, and other professional advice as to whether digital assets are appropriate investments for you.

  3. Digital Asset Holdings Are Not Covered By FDIC or SIPC. In general, US broker-dealers cannot custody non-securities digital assets. Therefore, US brokers seeking to offer their clients the ability to trade digital assets must work with another entity (a "Crypto Broker/Custodian") which is suitably licensed, and at which clients trading digital assets have separate accounts in their own name. These Crypto Broker/Custodians are not broker-dealers, and so SIPC coverage does not apply to accounts at Crypto Broker/Custodians. Likewise, most Crypto Broker/Custodians are not insured banks, and digital assets are not cash, so FDIC coverage does not apply to digital assets held in accounts at Crypto Broker/Custodians.

    IBKR has selected Paxos as the Crypto Broker/Custodian with which to work. By requesting trading permissions for digital assets through IBKR's platform, you are opening an account in your name at Paxos (the previously mentioned Paxos Account). All trading you do in digital assets through IBKR's platform will be executed in your Paxos Account (and not an account at IBKR), and Paxos will be your custodian and counterparty for those trades, which means that Paxos holds your digital assets for you and represents your ownership of them on their internal ledger. As explained above, the holdings in your Paxos Account are not protected by FDIC or SIPC insurance in the event of Paxos' or IBKR's insolvency.

    Notwithstanding the above, because IBKR is a member of the National Futures Association (the "NFA"), IBKR is required to provide you with the following disclosure in connection with trading digital assets / "virtual currencies":

    INTERACTIVE BROKERS LLC IS A MEMBER OF NFA AND IS SUBJECT TO NFA'S REGULATORY OVERSIGHT AND EXAMINATIONS. HOWEVER, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS.

  4. Trading Hours May Be Limited; Paxos Web Interface; Stop Loss Orders. Digital assets generally trade 24/7, and their prices may change dramatically over the weekend. But your ability to access your Paxos Account through IBKR's platform, including purchasing or selling digital assets over the weekend, may be limited. Please visit IBKR's public website for additional detail on trading hour limitations.

    To mitigate this risk, Paxos will make available to you at https://ibkr.paxosclients.com/, on a best-efforts-basis, a separate web-based interface (the "Paxos Web Interface"). Through the Paxos Web Interface, you can view digital asset positions at any time, and you can place orders to close (or reduce) positions in digital assets at times when IBKR's platform is unavailable for trading. If you have designated your Paxos Account as your Payment Source Account, you may also place buy orders directly with Paxos through the Paxos Web App, subject to the requirement that buy orders must be fully funded (including commission) when placed.

    Paxos may offer stop and/or stop-limit orders (generally, "stop-loss orders") that you may choose to use to manage your risk, with respect to sudden decreases in the value of digital assets in your Paxos Account.

    A stop order is an order to buy or sell a digital asset once the price of the digital asset reaches a specified price (the "stop price"). When the stop price is reached, a stop order becomes a market order and can execute at any price (not necessarily at the stop price). A sell stop order is entered at a stop price below the current market price. Investors generally use a sell stop order to limit a loss or to protect a profit on a digital asset that they own.

    A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order. Once the stop price is reached, a stop-limit order becomes a limit order that will be executed (if possible) at a specified price (or better). Like a regular limit order, stop-limit orders will only execute if there is liquidity at your limit price or a better price.

    In a quickly falling market, including in situations where many customers submit stop orders with a similar stop price, or when there is a lack of liquidity in the market, a stop order may execute a significant amount away from the specified stop price and a stop-limit order may not execute at all.

    Stop and stop-limit orders, while outstanding, are eligible to execute even outside of the times when IBKR's platform is available for trading.

    Using stop orders carries its own risks, including that your order may execute at an unfavorable price, and that the price of the digital asset may subsequently rise sharply above the level of the stop price, and you could lose money if you then reestablish your position at a price above the price at which you exited it as a result of your stop-loss order executing.
  5. Digital Asset Purchases Must Be Fully Funded When Orders Are Submitted. You are responsible for ensuring that there is sufficient cash available in your designated Payment Source Account to fully fund your purchase of digital assets at the time you submit an order. If you have designated your Paxos Account as your Payment Source Account, you are responsible for transferring cash from IBKR to Paxos before placing a buy order. If you have designated your IBKR brokerage account as your Payment Source Account, IBKR will transfer cash from your IBKR brokerage account to Paxos when you execute a trade to purchase digital assets. Orders that are not fully funded will be rejected.

  6. The Digital Asset Market Is Highly Speculative And Extremely Volatile. The market for digital assets can be extremely volatile. The price of digital assets may be influenced by, among other things, the performance of the economy as a whole; new or amended government regulation; the changing supply and demand relationships for digital assets; governmental, commercial and trade programs and policies; interest rates; technological developments; inflation; national and international political and economic events; statements by internet celebrities; social media sentiment; and the prevailing psychological characteristics of the relevant marketplace.

  7. Digital Assets Custodied with Paxos Will Have No Margin Value In Your IBKR Account. The assets (whether digital or cash) custodied in your Paxos Account will not be assigned any margin value. Such digital assets will not be considered in determining your IBKR account's compliance with either securities or commodities margin requirements. If you have insufficient equity in your IBKR account to meet your margin requirements, the assets in your IBKR account may be liquidated.

  8. Digital Assets Carry Liquidity Risk. Paxos is not obligated to provide quotes for digital assets at any time, and neither Paxos (nor IBKR) guarantee the continuous availability of quotations or trading for digital assets on Paxos' or any other digital asset exchanges. Paxos may in its sole discretion cease quoting digital assets and/or cease entering new digital asset transactions at any time.

  9. You Will Pay Commissions For Trading Digital Assets. Paxos will charge commissions on your digital asset trades. For more details on the commissions, please see https://www.interactivebrokers.com/en/index.php?f=1590.

  10. Your Agreement with Paxos Governs Your Paxos Account. Your Paxos Account is governed by the Paxos Exchange Terms & Conditions ("Paxos T&Cs"). You should read the Paxos T&Cs carefully and understand the terms of your relationship with Paxos.

  11. You Are Not Permitted To Short Digital Assets. Short sales of digital assets are prohibited. The inability to open short digital asset positions may negatively impact your ability to protect against trading losses.

  12. The Digital Assets Available to You Are Limited and Subject to Change. The digital assets available for trading in your Paxos Account are limited. Paxos or IBKR may further limit the available digital assets to be traded on the IBKR platform at their own discretion and without prior notice to you. A complete list of available digital assets that may be purchased in your Paxos Account through IBKR's platform is available at https://www.interactivebrokers.com/en/index.php?f=46390.

  13. Risk Of Disruption Or Interruption Of Access To Paxos Account. Both IBKR and Paxos rely on computer software, hardware and telecommunications infrastructure and networking to provide their respective services to you, and without these systems neither can provide you with access to your respective accounts. These computer-based systems and services such as those used by Paxos are inherently vulnerable to disruption, delay or failure, which may cause you to lose access to the IBKR trading platform and thereby your Paxos account or may cause IBKR or Paxos not to be able to provide digital asset quotations or trading, or may negatively affect any or all aspects of Paxos' services. Under the IBKR Client Agreement, you accept the IBKR systems and services "As-ls" and IBKR's liability to you is limited.

  14. Other Important Information Covered by Paxos Terms & Conditions. If at any time you wish to transfer some or all of your digital asset holdings in your IBKR-linked Paxos account out of your IBKR-linked Paxos account and into an independent Paxos account (from which you can then continue to freely trade such assets or transfer them to other addresses on the blockchain), please see the Paxos Terms & Conditions for instructions on how you may do so. In the event that IBKR ceases operations, Paxos will contact you to transfer the holdings in your IBKR-linked account to an independent account, in accordance with the Paxos Terms & Conditions.

4174| 5/3/2021

Risk Disclosure for Trading U.S. Unallocated Gold with Interactive Brokers LLC

Important Information Regarding Trading U.S. Unallocated Gold

Interactive Brokers LLC ("IBKR") offers customers the ability to invest in U.S. unallocated spot gold ("US Gold"). Investing in US Gold involves risk. You should carefully consider the risks below before making an investment decision.

  1. Trading Of US Gold is Risky. Purchasing US Gold exposes you to the risk that the price of spot gold will fall. Gold prices can rise or fall dramatically. If you hold a position in US Gold and the value of gold falls, you can lose money. You must carefully consider your financial circumstances and your risk tolerance before trading US Gold, and you should not trade US Gold unless you have the financial capability to sustain losses if they occur.

  2. No Investment Advice, Recommendations, Or Tax Advice. IBKR does not provide investment, tax, or trading advice. Our service is "execution only", and we will only act on your instructions and not advise you on any transaction, nor will we monitor your trading decisions to determine if they are appropriate for your or to help you avoid losses. You should obtain your own financial, legal, taxation, and other professional advice as to whether US Gold is an appropriate investment for you. By making US Gold available to you, IBKR does not guarantee the appropriateness or suitability of US Gold for your financial circumstances.

  3. US Gold Is Not Traded On A Regulated Exchange And Is Not Cleared With A Central Clearinghouse. US Gold transactions are transactions with IBKR as your counterparty, and are not traded on a regulated exchange and are not cleared on a central clearinghouse. Thus, exchange and clearinghouse rules and protections do not apply to trading US Gold with IBKR.

  4. US Gold Holdings Are Not Covered By SIPC. Your holdings in US Gold are not covered by SIPC in the event of IBKR's insolvency.

  5. Not SEC or CFTC Regulated Investments. The Securities Exchange Commission ("SEC") and the Commodities Futures Trading Commission ("CFTC") regulate certain investment products in the United States. US Gold transactions constitute "spot" transactions in gold under the Commodities Exchange Act and are not subject to regulation by either the SEC or CFTC.

  6. Physical Delivery Of Precious Metals From IBKR's Precious Metals Custodian Is At Your Expense And Risk. IBKR generally will allow you to convert unallocated US Gold to allocated gold bullion, and take physical possession of such allocated gold bullion, according to the terms of the Client Agreement Supplement governing the US Gold program. Physical delivery of US Gold may require minimum delivery quantities and may involve additional charges. IBKR may employee an agent to make delivery of such bullion to your specified address.

  7. The Gold Market is Speculative And Volatile. The market for gold can be highly volatile. The price of gold will be influenced by, among other things, the performance of the economy as a whole; the changing supply and demand relationships for gold; governmental, commercial and trade programs and policies; interest rates; inflation; national and international political and economic events; and the prevailing psychological characteristics of the relevant marketplace.

  8. US Gold Will Have No Margin Value In Your Account. US Gold in your account will not be assigned any margin value for purposes of determining your Account's compliance with either securities or commodities margin requirements. This may expose your account to the risk of liquidation if you have insufficient equity in your account (apart from the value of your US Gold holdings), to meet your margin requirements.

  9. US Gold Carries Liquidity Risk. IBKR is not obligated to provide quotes for US Gold at any time, and IBKR does not guarantee the continuous availability of quotations or trading for US Gold. IBKR may in its sole discretion cease quoting US Gold and/or cease entering new US Gold transactions at any time.

  10. You Will Pay Commissions, Spreads, And Storage Costs Among Other Costs Of Trading US Gold. IBKR will charge commissions on your US Gold trades. In addition, you will pay a spread on your US Gold transactions, meaning that the price you pay to buy US Gold generally will be some amount higher than the theoretical market value of the US Gold and the price you receive when you sell US Gold generally will be some amount lower than the theoretical market value of the US Gold. You will pay storage costs to IBKR to cover the cost of storing the gold backing your US Gold holdings. All of these costs will lower the total return (or increase the loss) on your investment in US Gold. For more details on the fees associated with IBKR's US Gold program, please see our website at https://www.interactivebrokers.com/en/index.php?f=1590&p=metals.

  11. IBKR Has the Right to Correct Trade Errors. IBKR can cancel, adjust or close out US Gold transactions after confirmation to you to correct errors, including but not limited to technical errors in IBKR's platform and US Gold transactions not reasonably related to the correct market price.

  12. You Are Not Permitted To Short Precious Metals. IBKR does not permit its Clients to perform short sales of US Gold. The inability to open short US Gold positions may negatively impact your ability to protect against trading losses.

  13. Risk Of Disruption Or Interruption Of Access To IBKR's Electronic Systems And Services. IBKR relies on computer software, hardware and telecommunications infrastructure and networking to provide its services to Clients, and without these systems IBKR cannot provide the services. These computer-based systems and services such as those used by IBKR are inherently vulnerable to disruption, delay or failure, which may cause you to lose access to the IBKR trading platform or may cause IBKR not to be able to provide Precious Metal quotations or trading, or may negatively affect any or all aspects of IBKR's services. Under the IBKR Client Agreement, you accept the IBKR systems and services "As-ls" and our liability to you is limited.

INFORMATION ON FILING COMPLAINTS
If you wish to file a complaint with Interactive Brokers LLC ("IB"), we encourage you to send your complaint via Account Management for the most expedient and efficient handling. This can be done by clicking on "Message Center." Under "New Ticket" select the most relevant Category and Sub-Category relating to the issue. For more information on filing a complaint in this manner, please visit IB's website at http://ibkb.interactivebrokers.com/node/1302.

Alternatively, customers may send their complaints by contacting customer service at the telephone numbers listed on the IB website at www.interactivebrokers.com/help; or by hard copy addressed to:

Legal & Compliance Department
Interactive Brokers LLC
2 Pickwick Plaza, 3rd Floor
Greenwich, CT 06830

Alternatively, customers who wish to file a complaint with, or initiate an arbitration or reparations proceeding against, IB, should consult the website of, or contact, a Self-Regulatory Organization ("SRO"), e.g., the Securities and Exchange Commission (www.sec.gov), the Financial Industry Regulatory Authority ("FINRA") (www.finra.org), the National Futures Association (www.nfa.futures.org), the Commodity Futures Trading Commission (www.cftc.gov).


INFORMATION ABOUT THE SECURITIES INVESTOR PROTECTION CORPORATION
The Securities Investor Protection Corporation ("SIPC") is a non-profit, membership corporation funded by broker-dealers that are members of SIPC. You may obtain information about SIPC coverage for your account, including the SIPC brochure, on the IB website by clicking here.

For information about your IB account, contact IB by clicking here.

You can contact SIPC directly at:

Securities Investor Protection Corporation
1667 K Street, N.W. - Suite 1000
Washington, D.C. 20006-1620
Telephone: (202) 371-8300
Facsimile: (202) 223-1679
Email: asksipc@sipc.org
www.sipc.org


NOTICE REGARDING PHISHING SCAMS
Due to the increasing risk of identity theft, Interactive Brokers ("IB") is providing you with this notice regarding phishing scams. Phishing is a fraudulent activity in which one attempts to obtain sensitive information by masquerading as a trustworthy institution. These attempts are typically carried out by an email containing a link to what appears to be an authentic website. These counterfeit sites prompt you to enter your personal information, which the thieves may then use to access your accounts. Note that IB will NEVER send an email requesting sensitive information such as your password. If you receive a suspicious email request which identifies IB, DO NOT RESPOND and notify our Security Team by calling toll-free in the US at (877) 442-2757 or direct at (312) 542-6901. IB reminds you that Secure Login devices and customer user names and passwords should always be kept confidential.

IB goes to great lengths to keep customer accounts secure. Please visit the IB website for Customer Best Practices that can provide another layer of safety from online security threats: interactivebrokers.com/bestpractices.


NOTICE REGARDING THE OPTIONS DISCLOSURE DOCUMENT
The Options Clearing Corporation ("OCC") publishes an Options Disclosure Document ("ODD"), and periodically updates the document with various supplements. The most recent version of this document was published in March 2022. The current ODD is available on the OCC website and can be viewed by clicking on the following link: http://www.theocc.com/about/publications/character-risks.jsp.


CONSENT TO ACCEPT ELECTRONIC RECORDS AND COMMUNICATIONS
IB provides electronic trade confirmations, account statements, tax information, proxy materials and other Customer records and communications (collectively, "Records and Communications") in electronic form to the maximum extent permitted by applicable law. Electronic Records and Communications may be sent to Customer's Trader Workstation ("TWS") or to Customer's e-mail address, or for security purposes may be posted on the IB website or on the secure website of one of IB's service providers and customer will need to log in and retrieve the Communication. By entering into this Agreement, Customer consents to the receipt of electronic Records and Communications. Such consent will apply on an ongoing basis and for every tax year unless withdrawn by Customer. Customer may withdraw such consent at any time by providing electronic notice to IB through the IB website. If Customer withdraws such consent, IB will provide required Records and Communications (e.g., tax documents, proxy materials, etc.) in paper form upon request by telephone or via the IB website. However, IB reserves the right to require Customer to close Customer's account if Customer withdraws consent to receiving electronic delivery of Records and Communications.

In order to trade using the IB TWS, and to receive Records and Communications through the TWS, there are certain system hardware and software requirements, which are described on the IB website at http://www.interactivebrokers.com. Since these requirements may change, Customer must periodically refer to the IB website for current system requirements. To receive electronic mail from IB, Customer is responsible for maintaining a valid Internet e-mail address and software allowing customer to read, send and receive e-mail. Customer must notify IB immediately of a change in Customer's e-mail address by using those procedures to change a Customer e-mail address that may be available on the IB website.


IB FINANCIAL STATEMENTS
Standard & Poor's issues investment grade ratings to both IBG LLC and IB LLC. For more information on Standard & Poor's, visit: http://www.standardandpoors.com.

The Securities and Exchange Commission requires that we make available to customers the annual and semi-annual statements of financial condition for Interactive Brokers LLC, a subsidiary of IBG LLC. You may access such information for the most recent period by clicking here.


Please make sure to check the IB website frequently for announcements and information, particularly regarding the functionalities of IB's trading platform, and services, policies, news, and regulatory information. Information regarding webinars and other training tools in connection with IB's trading platform are also available on IB's website. If you have any questions in relation to the information provided on IB's website, please contact IB Customer Service using the information available at https://www.interactivebrokers.com/help.

As always, we thank you for using Interactive Brokers.